Goal 3: Land Preservation and Restoration

prevention programs, improving response capabilities, and maximizing the effectiveness of
response and cleanup actions. This approach will help ensure that human health and the
environment are protected and that land is returned to beneficial use.

In FY 2009, EPA also will continue to use a hierarchy of approaches to protect the land:
reducing waste at its source, recycling waste, managing waste effectively by preventing spills
and releases of toxic materials, and cleaning up contaminated properties. The Agency
especially is concerned about threats to our most sensitive populations, such as children, the
elderly, and individuals with chronic diseases, and prioritizes cleanups accordingly. '

The Comprehensive Environmental Response, Compensation, and Liability Act
(CERCLA, or Superfund) provides legal authority for EPA’s work to protect the land. The
Agency and its partners use Superfund authority to clean up uncontrolled or abandoned
hazardous waste sites, allowing land to be returned to productive use. The Resource
Conservation and Recovery Act (RCRA) also provides legal authority for EPA to fulfill this goal.
Under RCRA, EPA works in partnership with states and tribes to address risks associated with
leaking underground storage tanks and with the generation and management of hazardous and
non-hazardous waste.

In addition, EPA uses authorities provided under the Clean Air Act, Clean Water Act, and
Oil Pollution Act of 1990 to protect against spills and releases of hazardous materials.
Controlling the many risks posed by accidental and intentional releases of harmful substances
presents a significant challenge. In FY 2009, EPA will continue to ensure that it is adequately
prepared to minimize contamination and harm to the environment from spills and releases of
hazardous materials by improving its readiness to respond to emergencies through training as
well as maintaining a highly skilled, well-trained, and equipped response workforce.

The following themes characterize EPA’s land program activities under Goal 3 in
FY 2009: Revitalization; Recycling, Waste Minimization and Energy Recovery; and
implementation of the Energy Policy Act of 2005 (EPAct).

e Revitalization: All of EPA’s cleanup programs (Superfund Remedial, Superfund Federal
Facilities Response, Superfund Removal, RCRA Corrective Action, Brownfields, and
Underground Storage Tanks) and their partners are taking proactive steps to facilitate
the cleanup and revitalization of contaminated properties. In FY 2009, the Agency is
requesting $914.8 million to help communities revitalize these once productive
properties by removing blight, satisfying the growing demand for land, helping limit urban
sprawl, fostering ecologic habitat enhancements, enabling economic development, and
maintaining or improving quality of life. In reflection of the high priority the Agency has
placed on land revitalization, EPA recently adopted a series of acres-based, cross-
program revitalization measures (CPRMs)’ to help document progress in cleaning up
and promoting the protective use of previously contaminated land. The CPRMs will help
EPA communicate the extent of land subject to its cleanup programs, and the subset of

1 Additional information on these programs can be found at: www.epa.gov/superfund,

http://www. epa.gov/superfund/programs/er/index.htm, http://Awww.epa.gov/epaoswer/hazwaste/ca/.
http://www.epa.gov/brownfields/, http:/Avww.epa.gov/swerust/, http:/Avww.epa.gov/swerfttr/ and
hittp://www.epa.gov/swerrims/landrevitalization,

? For more information on the CPRMs, go to http://www.epa.gov/swerrims/landrevitalization/docs/cprmguidance-

10-20-06covermemo. pdf.

12


Appendixes


Goal 5: Compliance and Environmental Stewardship

program, the Agency reviews and responds to 100 percent of the notices for trans-boundary
movement of hazardous waste, ensuring that these wastes are properly handled in accordance
with international agreements and Resource Conservation and Recovery Act regulations. The
proposed budget for Compliance Monitoring activities in FY 2009 is $97.2 million.

The Enforcement program addresses violations of environmental laws, to ensure that
violators come into compliance with Federal laws and regulations and reduce pollution.
In FY 2009, the program will achieve these environmental goals through consistent, fair, and
focused enforcement of all environmental statutes. The overarching goal of The Enforcement
program is to protect human health and the environment, targeting its actions according to
degree of health and environmental risk. The program is considering utilizing analyses and
evaluations of statistically valid compliance rates. In FY 2009, EPA will continue to implement
its national compliance and enforcement priorities, which address the most widespread types of
violations that also pose the most substantive health and environmental risks. In addition, in
FY 2009 EPA anticipates reducing, treating, or eliminating an estimated 890 million pounds of
pollutants building upon our achievements to date in reducing pollution through enforcement
settlement agreements and compliance incentives by an estimated 4.5 billion pounds over the
last six fiscal years.

Maximum compliance requires the active efforts of the regulated community. EPA’s
Audit Policy encourages corporate audits of environmental compliance and subsequent
correction of self-discovered violations, providing a uniform enforcement response toward
disclosures of violations. Under the Audit Policy, when companies voluntarily discover and
promptly correct environmental violations, EPA may waive or substantially reduce civil penalties.
Evaluation of the results of violations disclosed through self-reporting will occur in order to
understand the effectiveness and accuracy of such self-reporting. Throughout FY 2009, EPA
will continue to investigate options for encouraging self-directed audits and disclosures with
particular emphasis on companies in the process of mergers and/or acquisitions. Also in
FY 2009, EPA’s Enforcement and Compliance Assurance program will continue to develop
meaningful measures to assess the impact of enforcement and compliance activities and target
areas that pose the greatest risks to human health or the environment, display patterns of
noncompliance, or include disproportionately exposed populations.

EPA fulfills its uniquely Federal responsibilities under the National Environmental Policy
Act (NEPA) and Section 309 of the Clean Air Act by reviewing and commenting on other
Federal agency Environmental Impact Statements (ElSs), and making the comments available
to the public. NEPA requires that Federal agencies prepare and submit ElSs to identify
potential environmental consequences of major proposed activities and develop plans to
mitigate or eliminate adverse impacts. The FY 2009 NEPA budget is $16.3 million.

Improving Environmental Performance through Innovation and Pollution
Prevention and Stewardship

In FY 2009, with a budget of $18.4 million, the Pollution Prevention program will continue
being one of the Agency’s primary tools for minimizing and preventing adverse environmental
impacts by preventing the generation of pollution at the source. Through pollution prevention
integration, EPA will work to bring about a performance-oriented regulatory system that
develops innovative, flexible strategies to achieve measurable results; promotes environmental
stewardship in all parts of society; supports sustainable development and pollution prevention;

29


Appendix A: Categorical Grants

hazardous material, 1,792 million gallons of water conserved, $68 million saved through
reduction in pollution and 1,581 billion BTUs conserved.

Environmental Information Grants

In FY 2009, EPA requests $11.0 million to continue the Environmental Information
Exchange Network grant program. Started in 2002, the Exchange Network grant program
provides states, territories, and tribes with assistance developing the information management
and technology (IM/IT) capabilities they need to take full advantage of the potential benefits
provided by the Exchange Network. Enhancing and expanding the Network improves
environmental decision making and improves data quality, timeliness and accessibility while
reducing the burden on those who provide it. Now that all 50 states, seven tribes, and one
territory have nodes, the emphasis in FY 2009 has shifted from building-out IT infrastructure to
upgrading technology and expanding environmental information management and exchange.
Exchange Network grants also support the work of the Environmental Council of the States and
the National Congress of American Indians, both of which are representatives of their respective
environmental communities as well as conveners and information disseminators.

State and Tribal Underground Storage Tanks Program

The FY 2009 request includes $22.8 million for Underground Storage Tank (UST)
grants. In FY 2009, EPA will make grants to states under Section 2007 of the Solid Waste
Disposal Act, available to support core program activities as well as the leak prevention
activities under Title XV, Subtitle B of the Energy Policy Act of 2005 (EPAct).

In FY 2009, EPA will continue to focus attention on the need to bring all UST systems
into compliance and keep them in compliance with the release detection and release prevention
requirements. States will continue to use the UST categorical grant funding to implement their
leak prevention and detection programs. Specifically with the UST categorical grants, states will
fund such activities as seeking State Program Approval to operate the UST program in lieu of
the Federal program, approving specific technologies to detect leaks from tanks, ensuring tank
owners and operators are complying with notification requirements, and addressing equipment
compatibility issues. EPA also will assist the states in implementing the EPAct provisions
ensuring that states are developing operator training by August 8, 2009. In addition, EPA will
use funds for direct implementation of release detection or release prevention (spill, overfill, and
corrosion protection requirements) programs on Tribal lands where EPA carries out the UST
program.

Hazardous Waste Financial Assistance Grants

In FY 2009, EPA requests $103.3 million for Hazardous Waste Financial Assistance
grants. Hazardous Waste Financial Assistance grants are used for the implementation of the
Resource Conservation and Recovery Act (RCRA) hazardous waste program, which includes
permitting, authorization, waste minimization, enforcement, and corrective action activities. In
FY 2009, EPA expects to increase the number of hazardous waste facilities with new or
updated controls to prevent release by 100 facilities.

By the end of FY 2009, EPA and the authorized states also will control human

exposures to contamination at 60 RCRA corrective action facilities (from our 2008 baseline of
3,746). Controlling migration of contaminated groundwater at 60 of these facilities and

A4


Goal 1: Clean Air and Global Climate Change


Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

E-4


Appendix B: Infrastructure Finance

B-6


Appendix B: Infrastructure Finance

Set-Asides for Tribes: To improve public health and water quality on Tribal lands, the
Agency will continue the 1.5 percent CWSRF set-aside for funding wastewater grants to
tribes as provided in the Agency’s 2002 appropriation. The 2002 World Summit in
Johannesburg adopted the goal of reducing the number of people lacking access to
basic sanitation by 50 percent by 2015. Through this program, EPA contributes to this
goal which will provide for the development of sanitation facilities for tribes and Alaska
Native Villages.

Private Activity Bonds

Included in the President's Budget is a proposal to exempt Private Activity Bonds (PABs)
used to finance drinking water and wastewater infrastructure from the private activity bond
unified state volume cap. PABs are tax-exempt bonds issued by a State or local government,
the proceeds of which are used by another entity for a public purpose or by the government
entity itself for certain public-private partnerships. By removing drinking water and wastewater
bonds from the volume cap, this proposal will provide States and communities greater access to
PABs to help finance their water infrastructure needs and increase capital investment in the
Nation's water infrastructure.

This Water Enterprise Bond proposal would provide an exception to the unified annual
State volume cap on tax-exempt qualified private activity bonds for exempt facilities for the
“furnishing of water’ or “sewage facilities.” To ensure the long-term financial health and
solvency of these drinking water and wastewater systems, communities using these bonds must
have demonstrated a process that will move towards full-cost pricing for services within five
years of issuing the Private Activity Bonds. This will help water systems become self-financing
and minimize the need for future subsidies.

Alaska Native Villages

The President’s Budget provides $15.5 million for Alaska native villages for the
construction of wastewater and drinking water facilities to address serious sanitation problems.
EPA will continue to work with the Department of Health and Human Services’ Indian Health
Service, the State of Alaska, the Alaska Native Tribal Health Council and local communities to
provide needed financial and technical assistance.

Goal 4: Healthy Communities and Ecosystems

Brownfields Environmental Projects

The President’s Budget includes $93.6 million for Brownfields environmental projects.
EPA will award grants for assessment activities, cleanup, and revolving loan funds (RLF).
Additionally, this includes cleanup of sites contaminated by petroleum or petroleum products
and environmental job training grants. In FY 2009, the funding provided will result in the
assessment of 1,000 Brownfields properties. Using EPA grant dollars, the brownfields grantees
will leverage cleanup and redevelopment jobs and $900 million in cleanup and redevelopment
funding.


Page Intentionally Blank


Appendix D: Budget Tables

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
Environmental Program & Management
Air Toxics and Quality $188,561.0 $186,845.0 $192,951.0 $6,106.0
Brownfields $23,450.0 $23,665.0 $22,732.0 -$933.0
Climate Protection Program $87,927.0 $90,374.0 $87,008.0 -$3,366.0
(Energy STAR) ($43,926.0)  ($48,236.0) ——-($44,221.0) (-$4,015.0)
(Methane to markets) ($4,436.0) ($4,369.0) ($4,546.6) ($177.6)
(Asian Pacific Partnership) ($5,000.0) ($0.0) ($5,000.0) ($5,000.0)
(Greenhouse Gas Reporting Registry) ($0.0) ($3,445.0) ($0.0) (-$3,445.0)
Compliance $132,761.0 $127,069.0 $132,723.0 $5,654.0
Enforcement $187,666.0 $194,265.0 $200,550.0 $6,285.0
(Environmental Justice) ($3,822.0) ($6,399,0) ($3,811.0) (-$2,588.0)
Environmental Protection / Congressional
Priorities $0.0 $13,437.0 $0.0 -$13,437.0
Geographic Programs $74,511.0 $97,533.0 $69,800.0 -$27,733.0
Geographic Program: Chesapeake Bay $28,768.0 $30,528.0 $29,001.0 -$1,527.0
Geographic Program: Great Lakes $21,757.0 $21,686.0 $22,261.0 $575.0
Geographic Program: Long Island Sound $467.0 $4,922.0 $467.0 -$4,455.0
Geographic Program: Gulf of Mexico $4,457.0 $5,618.0 $4,578.0 -$1,040.0
Geographic Program: Lake Champlain $934.0 $2,707.0 $934.0 -$1,773.0
Geographic Program: Other $8,575.0 $32,072.0 $7,715.0 -$24,357.0
(San Francisco Bay) ($0.0) ($4,922.0) ($0.0) (-$4,922.0)
(Geographic Program: Puget Sound) ($1,000.0) ($19,688,0) ($1,000.0) (-$78,688.0)
(Lake Pontchartrain) ($978.0) ($963.0) ($978.0) ($15.0)
(Community Action for a Renewed
Environment (CARE) ($3,448.0) ($3,394.0) ($2,448.0) ($946.0)
(Geographic Program: Other (other
activities) ($3, 149.0) ($3, 105.0) ($3,289.0) ($184.0)
Regional Geographic Initiatives $9,553.0 $0.0 $4,844.0 $4,844.0
Homeland Security $24,419.0 $24,064.0 $23,526.0 -$538.0
(Decontamination) ($3,479.0) ($3, 426.0) ($3,511.0) ($85.0)
(Laboratory Preparedness and Response) ($500.0) ($492.0) ($0.0) ($492.0)
Indoor Air $26,869.0 $26,995.0 $24,668.0 -$2,327.0
Information Exchange / Outreach $117,206.0 $124,366.0 $119,868.0 -$4,498.0

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program

D-4


Appendix B: Infrastructure Finance

The resources included in this budget will enable the Agency, in conjunction with EPA’s
state, local, and Tribal partners, to achieve several important goals for 2009. Some of these
goals include:

- 90 percent of the population served by community water systems will receive drinking
water meeting all health-based standards.

- Award 107 assessment grants under the Brownfields program, bringing the cumulative
total grants awarded to more than 1,260 by the end of FY 2009 and paving the way for
productive reuse of these properties. Brownfields grantees will also leverage 3,800
cleanup and redevelopment jobs and $685 million in cleanup and redevelopment
funding.

Goal 1: Clean Air and Global Climate Change

Diesel Emissions Reduction Grant Program

In FY 2009, EPA will support the National Clean Diesel program, authorized in Sections
791-797 of the Energy Policy Act of 2005. This program focuses on reducing particulate matter
(PM) by up to 95 percent from existing diesel engines, including on-highway and non-road
equipment and reducing other, smog-forming emissions such as nitrogen oxides and
hydrocarbons. Five sectors are targeted for reduction: freight, construction, school buses,
agriculture, and ports. Grants will be provided to eligible entities in areas of the country that are
not meeting ambient air quality standards. This program will help provide immediate reductions
by retrofitting the engines with emission control technologies sooner than would otherwise occur
through normal turnover of the fleet because these engines often remain in service for 20 or
more years. In 2009, EPA will issue and manage various categories of Diesel Emission
Reduction grants. Seventy percent of the total funding available will be used to establish:
(1) competitive National Clean Diesel Campaign (NCDC) grants to directly fund and/or finance
retrofits, rebuilds, and replacement as well as fuel switching and fuel efficiency measures
associated with diesel trucks, ships, school buses and other diesel equipment,; (2) up to
10 percent of those funds used to establish grants to advance emerging diesel emission
reduction technologies, with a focus on new technologies applicable to ocean-going vessels,
harbor craft, and goods movement; and (3) competitive grants to help qualifying entities (states,
local governments, ports, etc.) create innovative Air Quality Finance Authorities/Programs
(AQFAs) that provide low cost, flexible loans for the purchase of new and cleaner used
equipment, as recommended by the Agency’s Environmental Finance Advisory Board (EFAB).
Thirty percent of the total funding available will be used in formula grants to states to implement
state diesel emission reduction programs defined under the Diesel Emission Reduction Act
(DERA). These funds will support EPA’s Strategy for Sustainable Ports. The Ports initiative is
comprised of many of the strategies and technologies implemented through all four aspects of
the Diesel Emission Reduction Program, as noted above. Through this initiative EPA will
reduce supply chain emissions associated with the movement of goods through ports.


Goal 3: Land Preservation and Restoration

In FY 2009, additional resources will be invested to research nanotechnology fate and
transport in response to an independent review of the RCRA portion of the Land Research
program to address emerging issues and strategic EPA issues. The primary objective of this
research will be to determine the physicochemical properties controlling the movement of
nanomaterials through soil and aquatic ecosystems. Research questions include the
identification of system parameters that alter the surface characteristics of nanomaterials
through aggregation (e.g., pH effects), complexation (e.g., surface complexation by dissolved
organic carbon) or changes in oxidation state (e.g., chemical- or biological-mediated electron
transfer).

16




PM
PNGV
POTWs
PPG
PRC
PWSS
RC
RCRA
RGI
RMP
RPIO

RWTA
S&T
SALC
SARA
SBO
SBREFA
SDWA
SDWIS
SITE
SLC
SRF
SRO
STAG
STORS

SWTR
TMDL
TRI
TSCA
UIC
UST
WCF
WIF
WIPP

Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

Particulate Matter

Partnership for a New Generation of Vehicles
Publicly Owned Treatment Works
Performance Partnership Grants

Program Results Code

Public Water System Supervision
Responsibility Center

Resource Conservation and Recovery Act of 1976
Regional Geographic Initiative

Risk Management Plan

Responsible Planning Implementation Office
Reprogramming Request

Rural Water Technical Assistance

Science and Technology

Sub-allocation (level)

Superfund Amendments and Reauthorizations Act of 1986
Senior Budget Officer

Small Business Regulatory Enforcement Fairness Act
Safe Drinking Water Act

Safe Drinking Water Information System
Superfund Innovative Technology Evaluation
Senior Leadership Council

State Revolving Fund

Senior Resource Official

State and Tribal Assistance Grants
Sludge-to-Oil-Reactor

Source Water Protection

Surface Water Treatment Rule

Total Maximum Daily Load

Toxic Release Inventory

Toxic Substances Control Act

Underground Injection Control

Underground Storage Tanks

Working Capital Fund

Water Infrastructure Funds

Waste Isolation Pilot Project

E-3


Annual Performance Plan and Budget Overview

EPA’s Mission

The mission of the Environmental Protection Agency (EPA) is to protect and safeguard
human health and the environment. This budget supports the Administration’s commitment to
environmental results as we work to increase the pace of improvement and identify new and
better ways to carry out our mission. It also emphasizes the need for sound management of our
federal resources, as delineated in the President's Management Agenda.

Annual Performance Plan and Congressional Justification

The EPA’s Fiscal Year (FY) 2009 Annual Performance Plan and Congressional
Justification requests $7.1 billion in discretionary budget authority and 17,217 Full Time
Equivalents (FTE). This request reflects the Agency’s efforts to work with its partners towards
protecting air, water, and land, as well as providing for EPA’s role in safeguarding the nation
from terrorist attacks. This request echoes the Administration’s commitment to setting high
environmental protection standards, while focusing on results and performance, and achieving
goals outlined in the President's Management Agenda.

The budget builds on EPA’s long record of accomplishments since its founding 37 years
ago. The agency and nation as a whole has achieved enormous successes. This budget builds
on these successes by strengthening our geographic initiatives, better leveraging our nation’s
resources, strengthening citizen involvement, maintaining our enforcement capabilities, and
implementing the President’s commitment to efficiently manage Federal resources.

Homeland Security

Following the cleanup and decontamination efforts of 2001, the Agency has focused on
ensuring we have the tools and protocols needed to detect and recover quickly from deliberate
incidents. The emphasis for FY 2009 is on several areas: biodefense research,
decontaminating threat agents, protecting our water and food supplies, and ensuring trained
personnel and key lab capacities are in place to be drawn upon in the event of multiple incidents
of national significance. Part of these FY 2009 efforts will continue to include activities that
support the Water Security Initiative (WSI) and assist in improving response capabilities through
specialized Weapons of Mass Destruction (WMD) training, state-of-the-art field and analytical
equipment, and increased technical knowledge relating to chemical, biological, and radiological
substances.

Human Capital

EPA will continue to develop workforce planning strategies that link current and future
Human Capital needs to mission accomplishment which will result in significant reductions in
skills gaps for Mission Critical Occupations. In addition, EPA’s recruitment strategy will focus on
hiring needs that will encourage the use of hiring flexibilities, build on centralized and local

ili


Appendix D: Budget Tables


Page Intentionally Blank




Goal 5: Compliance and Environmental Stewardship

Goal 5: Compliance and Environmental Stewardship

Strategic Goal: — Improve environmental performance through compliance with
environmental requirements, preventing pollution, and promoting environmental stewardship.
Protect human health and the environment by encouraging innovation and providing incentives
for governments, businesses, and the public that promote environmental stewardship.

Resource Summary

($ in 000)

Difference

> FY 2008 FY 2008 FY 2009 FY 2008EN

10.5% of Budget President's | Enacted President’s to FY 2009

Budget Budget Budget PresBud

1 - Improve Compliance $506,200 $506,582 $516,902 $10,320

2 - Improve Environmental

Performance through Pollution

Prevention and Innovation $109,080 $101,404 $107,099 $5,695

3 - Build Tribal Capacity $74,344 $73,239 $75,903 $2,664

4 - Enhance Science and Research $52,855 $53,624 $51,199 -$2,425

Goal 5 Total * $742,478 $734,848 $751,102 $16,254

Workyears ** 3471.4 3486.7 3425.5 -61.2

* Numbers may not add due to rounding.
** Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

The EPA will work to improve the nation’s environmental protection practices and
enhance natural resource conservation on the part of government, business, and the public. To
accomplish these goals, the Agency will employ a mixture of effective inspection, enforcement
and compliance assistance strategies; provide leadership and support for pollution prevention
and sustainable practices; reduce regulatory barriers; and refine and apply results-based,
innovative, and multi-media approaches to environmental stewardship and safeguarding human
health.

In addition, EPA will assist Federally-recognized tribes in assessing environmental
conditions in Indian Country, and will help build their capacity to implement environmental
programs. EPA also will strengthen the scientific evidence and research supporting
environmental policies and decisions on compliance, pollution prevention, and environmental
stewardship.

27


Goal 3: Land Preservation and Restoration

that land that is protective for people for current conditions, and that is ready (i.e.,
protective) for anticipated future uses. EPA cleanup programs began implementing
these new measures in FY 2007. Data from the CPRMs will be available in FY 2008
and beyond.

¢ Recycling, Waste Minimization and Energy Recovery: EPA is requesting $10.8 million in
FY 2009 to support EPA’s strategy for reducing waste generation and increasing
recycling. EPA’s strategy will continue to be based on: (1) establishing and expanding
partnerships with businesses, industries, tribes, states, communities, and consumers;
(2) stimulating infrastructure development and environmentally responsible behavior by
product manufacturers, users, and disposers; and (3) helping businesses, government,
institutions, and consumers reduce waste generation and increase recycling through
education, outreach, training, and technical assistance. In FY 2009, EPA will continue
the Resource Conservation Challenge (RCC) as a major national effort to find flexible,
yet more protective ways to conserve our valuable natural resources through waste
reduction, energy recovery, and recycling. Through RCC, the Agency also will pursue
the advancement of alternative domestic energy sources as well as clean energy, which
power our economy and drive our environmental successes.

¢ Implementing the EPAct: The EPAct® contains numerous provisions that significantly
affect Federal and state underground storage tank (UST) programs and requires that
EPA and states strengthen tank release and prevention programs. In FY 2007, working
with its tank partners, EPA developed grant guidelines* which implement the UST
provisions of the EPAct. In FY 2009, EPA is requesting $35.1 million to provide
assistance to states to help them meet their new responsibilities, which include: (1)
mandatory inspections every three years for all underground storage tanks, (2) operator
training, (3) prohibition of delivery for non-complying facilities®>, and (4) secondary
containment or financial responsibility for tank manufacturers and installers. EPA also is
submitting legislative language to allow states to use alternative mechanisms such as
the Environmental Results Program (ERP) to meet the mandatory three-year inspection
requirement. This proposal provides states with a less costly alternative to meet the
objectives of the EPAct. EPA also will continue implementing the UST Tribal strategy®
developed in FY 2006 in Indian country.

In addition to these themes, EPA’s Homeland Security and Enforcement work are important
components of the Agency’s prevention, protection, and response activities.

Homeland Security

EPA will continue to improve its emergency preparedness and response capability,
including homeland security capabilities. In FY 2009, the Agency is requesting $54.6 million to
improve its capability to respond effectively to incidents that may involve harmful chemical, oil,
biological, and radiological substances. The Agency will provide training to build the cadre of

* For more information, refer to http://frwebgate.access.po.gov/egi-
bin/getdoc.cgi?dbname=109_cong_public_laws&docid=f: publ058.109.pdf (scroll to Title XV - Ethanol And Motor Fuels,
Subtitle B - Underground Storage Tank Compliance, on pages 500-513 of the pdf file).

‘For more information, refer to http://www.epa.gov/OUST

5 Refer to Grant Guidelines to States for Implementing the Delivery Prohibition Provision of the Energy Policy Act of 2005,
August 2006, EPA-510-R-06-003, http://www.epa.gov/oust/fedlaws/epact_05.htm#Final.

© Refer to Strategy for an EPA/Tribal Partnership to Implement Section 1529 of the Energy Policy Act of 2005, August 2006,
EPA-510-F-06-005, http:/Avww.epa.gov/oust/fedlaws/epact_05.htm#Final.

13


Goal 4: Healthy Communities and Ecosystems

Along with assessing the risks that pesticides pose to human health, EPA conducts
ecological risk assessments under the Endangered Species Act (ESA) to determine potential
effects on plants, animals, and ecosystems. To ensure unreasonable risks are avoided, EPA
may impose risk mitigation measures such as modifying use rates or application methods,
restricting uses, or denying uses. EPA must ensure that pesticide regulatory decisions will not
adversely modify critical habitat or jeopardize the continued existence of species listed by the
U.S. Fish and Wildlife Service or National Marine Fisheries Service as threatened or
endangered.

In the biodefense arena, EPA will continue work to develop and validate methods to
evaluate the efficacy of antimicrobial products against bioterrorism agents, expanding this work
to address unique formulations, additional surface types, and additional bioterrorism agents and
emerging pathogens. The Agency will address critical gaps in efficacy test methodology and
knowledge of microbial resistance. In addition to vegetative bacteria, in FY 2009, EPA will
address threatening viruses and other emerging pathogens in environmental media. EPA will
invest in the development and evaluation of efficacy test protocols for products designed to
control viruses in the environment during decontamination. The development of “decon
toolboxes” for specific bioterrorism agents or classes of bacteria/viruses will continue into
FY 2009.

In order to improve the Agency’s ability to respond to events involving biothreat agents,
EPA will increase the number of standardized and validated methods for evaluating the efficacy
of decontamination agents. EPA will continue to seek independent third-party analysis for
method validation efforts through recognized standard setting organizations. As new methods
are developed, statistical modeling for various biodefense scenarios will be critical to the
development of science based performance standards. Microbial persistence, resistance to
antimicrobial agents, and an understanding of biofilm environments are also key factors in
evaluating the efficacy of decontamination tools. This work is taking place in the Homeland
Security: Preparedness, Response and Recovery program.

Toxics Programs

EPA programs under this goal have many direct and many indirect benefits. For
example, each year the Toxic Substances Control Act (TSCA) New Chemicals program reviews
and manages the potential risks from approximately 1,500 new chemicals and 40 products of
biotechnology that enter the marketplace. This new chemical review process not only protects
the public from the possible immediate threats of harmful chemicals, but it also has contributed
to changing the behavior of the chemical industry, making industry more aware and responsible
for the impact these chemicals have on human health and the environment.

The Acute Exposure Guideline Levels (AEGLs) program was designed by EPA to
provide scientifically credible data to directly support chemical emergency planning, response,
and prevention programs mandated by Congress. Emergency workers and first responders
addressing accidental or intentional chemical releases need to know how dangerous a chemical
contaminant may be to breathe or touch, and how long it may remain dangerous. The program
develops short-term exposure limits applicable to the general population for a wide range of
extremely hazardous substances and has assigned values to 218 chemicals to date.

19


Goal 3: Land Preservation and Restoration

In FY 2009, the Agency will continue to establish and use Special Accounts within the
Superfund Trust Fund. As of the end of FY 2007, EPA maintains more than 700 Special
Accounts within the Superfund Trust Fund. These accounts segregate site-specific funds
obtained from responsible parties that enter into settlement agreements with EPA. These funds
may create an incentive for other PRPs at that specific site to perform cleanup work. In
addition, these funds may be used by the Agency to fund cleanup activities if there are no
known or viable PRPs. The Agency will practice good fiscal stewardship in cleaning up sites by
maximizing the use of site-specific Special Account funds while preserving appropriated Trust
Fund dollars for sites without viable PRPs.

In FY 2009, the Agency will negotiate remedial design/remedial action cleanup
agreements and removal agreements at contaminated properties. Where negotiations fail, the
Agency will either take unilateral enforcement actions to require PRP cleanup or use
appropriated dollars to remediate sites. When appropriated dollars are used to cleanup sites,
the program will recover this money from the PRPs whenever possible.

Enhancing Science and Research to Restore and Preserve Land

The FY 2009 Land Research program supports the Agency's objective of reducing or
controlling potential risks to human health and the environment at contaminated waste sites by
providing the science to accelerate scientifically defensible and cost-effective decisions for
cleanup at complex sites in accordance with CERCLA.

In FY 2009, EPA is requesting $53.4 million in support of EPA’s efforts to enhance
science and research for land preservation and restoration. Research activities in FY 2009 will
focus on contaminated sediments, ground water contamination, multi-media, and site-specific
technical support. Research will advance EPA’s ability to accurately characterize the risks
posed by contaminated sediments and determine the range and scientific foundation for remedy
selection options. In addition, research aimed at developing data to support dosimetric and
toxicologic assessment of amphibole asbestos, fiber-containing material from Libby, Montana
will be conducted. Groundwater research will focus on the transport of contaminants in that
medium and the subsequent intrusion of contaminant vapors into buildings and continue
research on developing applications for permeable reactive barriers.

Oil spill remediation research will continue on physical, chemical, and biological risk
management methods for petroleum and non-petroleum oils spilled into freshwater and marine
environments as well as development of a protocol for testing solidifiers and treating oil.
Underground storage tank research will address the development of online transport models
that can be used by state project managers. Research areas such as resource conservation,
corrective action, multi-media modeling, leaching, containment systems, and landfill bioreactors
will constitute the major areas of research and support for RCRA activities in FY 2009. EPA
also will continue to develop a site-specific management approach of brownfields sites, develop
validated acceptable practices for land revitalization, collaborate with the private sector to
conduct field sampling, and with the states to optimize operations and monitoring of several
landfill bioreactors and determine their potential to provide alternative energy in the form of
landfill gas while increasing the nation’s landfill capacity.

15


Goal 5: Compliance and Environmental Stewardship

Improving Compliance with Environmental Laws

In order to be effective, the EPA requires a strong enforcement and compliance
program, which: identifies and reduces noncompliance problems; assists the regulated
community in understanding environmental laws and regulations; responds to complaints from
the public; strives to secure a level economic playing field for law-abiding companies; and
deters future violations. _EPA’s total proposed FY 2009 budget to improve compliance with
environmental laws is $516.9 million.

In order to meet the Agency’s goals, the program’s strategy employs an integrated,
common-sense approach to problem-solving and decision-making. An appropriate mix of data
collection and analysis, compliance monitoring, assistance and incentives, civil and criminal
enforcement resources, and innovative problem-solving approaches address _ significant
environmental issues and achieve environmentally beneficial outcomes.

The Civil Enforcement program’s overarching goal is to protect human health and the
environment, targeting enforcement actions according to degree of health and environmental
risk, and noncompliance rates. The program works with the Department of Justice to ensure
consistent and fair enforcement of all environmental laws and regulations. The program seeks
to level the economic playing field by ensuring that violators do not realize an economic benefit
from noncompliance, and to deter future violations. The civil enforcement program develops,
litigates, and settles administrative and civil judicial cases against serious violators of
environmental laws. In FY 2009, the Civil Enforcement program’s proposed budget is
$132.4 million.

EPA’s criminal enforcement program investigates and helps prosecute environmental
violations which seriously threaten public health and the environment and which involve
intentional, deliberate or criminal behavior on the part of the violator. The criminal enforcement
program deters violations of environmental laws and regulations by demonstrating that the
regulated community will be held accountable, through jail sentences and criminal fines, for
such violations. Bringing criminal cases sends a strong message for potential violators,
enhancing aggregate compliance with laws and regulations. In FY 2009, the Criminal
Enforcement program’s proposed budget is $52.2 million.

Furthermore, the Agency’s Enforcement and Compliance Assurance program uses
compliance assistance and incentive tools to encourage compliance with regulatory
requirements and reduce adverse public health and environmental problems. To achieve
compliance, the regulated community must first understand its regulatory obligations and then
learn how to best comply with them.

The Agency’s Compliance Monitoring program reviews and evaluates the activities of
the regulated community to determine compliance with applicable laws, regulations, permit
conditions and settlement agreements, to determine whether conditions present imminent and
substantial endangerment, and to analyze compliance rates. FY 2009 Compliance Monitoring
activities will be both environmental media- and sector-based, and will also seek to begin
addressing statistically valid compliance rates. The traditional media-based inspections
complement those performed by states and tribes. They are a key part of our strategy for
meeting the long-term and annual goals established for improving compliance in the air, water,
pesticides, toxic substances, and hazardous waste environmental programs. As part of this

28


Goal 2: Clean and Safe Water

10


Appendix E Acronyms

Environmental Protection Agency
List of Acronyms

E-1


Appendix D: Budget Tables

Environmental Protection Agency
Summary of Agency Resources by Goal
(Dollars in Thousands)

FY 2008 FY 2008 FY 2008
President's Enacted President's

Goal Budget Budget Budget
1 - Clean Air and Global Climate Change $910,365 $971,739 $938,582
2 - Clean and Safe Water $2,714,507 $2,854,782 $2,580,704
3 - Land Preservation and Restoration $1,662,990 $1,688,592 $1,691,128
4 - Healthy Communities and Ecosystems $1,174,062 $1,227,363 $1,191,004

5- Compliance and Environmental

Stewardship $742,478 $734,848 $751,102
Rescission of Prior Year's Funds ($5,000) ($5,000) ($10,000)
Total $7,199,402 _ $7,472,324 _ $7,142,520

Note: Totals may not add due to rounding.

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program

D-2


Goal 1: Clean Air and Global Climate Change

Clean Air Act prevent tens of thousands of premature mortalities, millions of incidences of
chronic and acute illness, tens of thousands of hospitalizations and emergency room visits, and
millions of lost work days.

Clean Air Rules

The Clean Air Rules are a major component of EPA work under Goal 1, and include a
suite of actions that will dramatically improve America's air quality. Three of the rules
specifically address the transport of pollution across state borders (the Clean Air Interstate Rule,
the Clean Air Mercury Rule and the Clean Air Nonroad Diesel Rule). These rules provide
national tools to achieve significant improvement in air quality and the associated benefits of
improved health, longevity and quality of life for all Americans. In FY 2009, EPA will continue to
work with the states and industry to implement these rules.

In addition to the Clean Air Rules, EPA will address emission reductions through the
Diesel Emissions Reduction Grants program authorized in sections 791-797 of the Energy
Policy Act of 2005. This program will provide immediate emission reductions from existing
diesel engines through engine retrofits, rebuilds and replacements, switching to cleaner fuels,
idling reduction strategies and other clean diesel strategies that can reduce particulate matter
(PM) emissions up to 95 percent, smog-forming emissions, such as hydrocarbons and nitrogen
oxide, up to 90 percent and greenhouse gases up to 20 percent. In FY 2009, EPA will issue
and manage various categories of Diesel Emission Reduction grants, including grants to target
diesel emissions in ports.

Energy

The Administration has a diverse portfolio of policy measures — including mandatory,
incentive-based, and voluntary programs — to meet the President's goal to reduce the
greenhouse gas (GHG) intensity of the U.S. economy by 18 percent by 2012. The President
has set a goal of reducing U.S. gasoline usage by 20 percent in the next ten years to lessen the
nation’s dependence on imported oil. EPA has a substantial role to play in advancing the
President's energy and climate strategies, given the Agency’s mandate for environmental
protection and the close linkage of energy and environment issues.

Ongoing efforts are already very significant. For example, EPA's current efforts will
contribute about 70 percent of the reductions necessary to meet the President's 2012 GHG
intensity goal. Moreover, EPA’s efforts can and will achieve remarkable results in a number of
other critical areas. By the end of 2008, for example, EPA expects to have programs in place
that will speed the development of lower-emissions coal, oil, gas, and renewable technologies;
partner with the manufacturing sector to develop more energy efficient technologies; and create
the framework needed to transform our transportation system from one almost solely reliant on
petroleum to one that accommodates an array of alternate fuels.

In 2009, EPA will begin implementation activities associated with the new GHG rules for
fuels and vehicles, which will be completed at the start of FY 2009. Needed implementation
activities will include upgrading and expanding vehicle engine and fuel data systems to
incorporate new data and handle certification, compliance, reporting and tracking requirements;
developing and implementing means to validate credit trading; implementing the fuel quality


Goal 4: Healthy Communities and Ecosystems

Recognizing that environmental policy and regulatory decisions will only be as good as
the science upon which they are based, EPA makes every effort to ensure that its science is of
the highest quality and relevance, thereby providing the basis for sound environmental results.
EPA uses the Research and Development (R&D) Investment Criteria of quality, relevance, and
performance in its decision-making processes through the use of research strategies and plans,
program review, peer review, and evaluation by the Board of Scientific Counselors (BOSC) and
the Science Advisory Board (SAB).

Six major research programs in this goal have undergone OMB’s PART evaluation
through FY 2007. They include endocrine disruptors research, ecosystems protection research,
human health research, global change research, human health risk assessment research, and
safe pesticides/safe toxics research.

25


Appendix D; Budget Tables

Resources by Program / Project

(Dollars in Thousands)

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
TOTAL, EPA (Excludes Rescission to Prior Year
Funds) $7,204,400.0  $7,477,324.0 —_$7,152,520.0 -$324,804.0
Rescission to Prior Year Funds -$5,000.0 -$5,000.0 -$10,000.0 -$5,000.0
TOTAL, EPA $7,199,400.0  $7,472,324.0 —$7,142,520.0 -$329,804.0

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program

D-9


Appendix E: Acronyms

Environmental Protection Agency
List of Acronyms

Assistant Administrator

Alternative Dispute Resolution

Assistant Regional Administrator

Agency for Toxic Substances and Disease Registry
Buildings and Facilities

Clean Air Act

Concentrated Animal Feeding Operations

Clean Air Allowance Trading Program

Community Action for a Renewed Environment
Clean Air Partnership Fund

Community-Based Environmental Protection
Climate Change Action Plan

Climate Change Technology Initiative

Center for Environmental Information and Statistics
Chief Financial Officer

Categorical Grant

Common Sense Initiative

Combined Sewer Overflows

Clean Water Act

Clean Water Action Plan

Disinfectant By Products

Design for the Environment

Defense Finance and Accounting System
Environmental Leadership Project

Environmental Justice

Energy Policy Act of 2005

Emergency Preparedness and Community Right-to-Know Act
Environmental Programs and Management
Emergency Rapid Response Services

Executive Steering Committee

Environmental Technology Initiative

Environmental Technology Verification

Fixed Account Numbers

Funds Certifying Officer

Federal Accounting Standards Advisory Board
Federal Insecticide, Fungicide and Rodenticide Act
Federal Managers’ Financial Integrity Act

Food Quality Protection Act

General Assistance Program Grants

Greenhouse Gas

Government Performance and Results Act
Hazardous and Solid Waste Amendments of 1984
High Production Volume

Homeland Security

Hazardous Waste Identification Media and Process Rules


Appendix E: Acronyms

IAG
ICR
IFMS
IPCC
IRM
ISTEA
ITMRA
LUST
MACT
NAAQs
NAFTA
NAPA
NAS
NDPD
NEP
NEPPS
NESHAP
NOA
NPDES
NPL
NPM
NPR
NPS
OAM
OA
OAR
OARM
OCFO
OCHP
OECA
OE
OERR
OFA
OFPP.
OGC
OIA
OlG
OMTR
OPAA
OPPTS
ORD
OSWER
OTAG

PBTs
PC&B

Environmental Protection Agency
List of Acronyms

Interagency Agreements

Information Collection Rule

Integrated Financial Management System
Intergovernmental Panel on Climate Change
Information Resource Management

Intermodal Surface Transportation Efficiency Act
Information Technology Management Reform Act of 1995-AKA Clinger/Cohen Act
Leaking Underground Storage Tanks

Maximum Achievable Control Technology

National Ambient Air Quality Standards

North American Free Trade Agreement

National Academy of Public Administration

National Academy of Science

National Data Processing Division

National Estuary Program

National Environmental Performance Partnership System
National Emissions Standards for Hazardous Air Pollutants
New Obligation Authority

National Pollutant Discharge Elimination System
National Priority List

National Program Manager

National Performance Review

Non-Point Source

Office of Acquisition Management

Office of the Administrator

Office of Air and Radiation

Office of Administration and Resources Management
Office of the Chief Financial Officer

Office of Children’s Health Protection

Office of Enforcement and Compliance Assurance
Office of Environmental Information

Office of Emergency and Remedial Response

Other Federal Agencies

Office of Federal Procurement Policy

Office of the General Counsel

Office of International Affairs

Office of the Inspector General

Open market trading rule

Office of Planning, Analysis and Accountability

Office of Pesticides, Prevention and Toxic Substances
Office of Research and Development

Office of Solid Waste and Emergency Response
Ozone Transport Advisory Group

Office of Water

Persistent Bioaccumulative Toxics

Personnel, Compensation and Benefits


Goal 4: Healthy Communities and Ecosystems

International Activities

EPA leads efforts to address global environmental issues. To sustain and enhance
domestic and international environmental progress, EPA enlists the cooperation of other nations
and international organizations to help predict, understand, and solve environmental problems
of mutual concern. By assisting developing countries to manage their natural resources and
protect the health of their citizens, EPA also helps to protect human health and the environment
in the U.S.

The Agency also works to include environmental protection provisions and commitments
to effectively enforce environmental laws and regulations in all international trade agreements
negotiated by the United States. As an example, EPA contributes to the associated
environmental reviews and environmental cooperation agreements by developing baseline
assessments of existing environmental law and enforcement regimes in a number of U.S.
trading partner countries, advocating for greater attention to invasive species, and addressing
other concerns associated with the movement of traded goods. Addressing local pollution and
infrastructure deficiencies along the U.S.-Mexico border are also priorities for Mexico and the
United States under the Border 2012 Agreement. The key to sustaining and enhancing
progress, both domestically and internationally, is the collaborative efforts of national, Tribal,
state, and local governments, international organizations, the private sector, and concerned
citizens.

Environmental Justice

EPA is committed to protecting the health and environment of all people, regardless of
race, color, national origin, or income. Toward that end, the Agency will focus its environmental
justice efforts on the following eight national priorities:

Reducing asthma attacks,

Reducing exposure to air toxics,

Increasing compliance with regulations,

Reducing incidence of elevated blood lead levels,

Ensuring that fish and shellfish are safe to eat,

Ensuring that water is safe to drink,

Revitalizing brownfields and contaminated sites, and

Using collaborative problem-solving to address environmental and public health concerns.

Research

EPA has a responsibility to ensure that efforts to reduce potential environmental risks
are based on the best available scientific information. Strong science allows for identification of
the most important sources of risk to human health and the environment, as well as the best
means to detect, abate, and avoid possible environmental problems, and thereby guides our
priorities, policies, and deployment of resources.

To accelerate the pace of environmental protection for healthy people, communities, and
ecosystems, EPA will engage in high-priority, cutting-edge, multidisciplinary research efforts in

22


Annual Performance Plan and Budget Overview

Environmental Protection Agency’s

Resources by Major Category

(Dollars in Billions)

O Operating Programs
O Trust Funds
@ Infrastructure Financing
$9.0
seo J $8.1 $8.4 S84 $8.0
, $7.5
$7.2 $7.1
$7.0 | Ff
$6.0 a i
$5.0 | i
$4.0 a
“ F 1.3
$3.0 4 $1.5] |$1.3] |$1.4 4 $1.3} |$ $1.3
$1.3] | $1.3 $1.4
$20 4 $1.3 “| [$1.3
$1.0 4
$0.0 4

2000 2001 2002 2003 2004 2005 2006 2007 2008 2008 2009

EN EN EN EN EN EN EN EN_~ PB

Totals may not add due to rounding

1 FY 2002 does not include $175.6 M provided for Homeland Security in the Emergency Supplemental Appropriations Act

? Reflects FY 2005 Enacted 0.8% Rescission

3 Reflects FY 2006 Enacted 0.476% rescission plus 1% additional rescission—excludes Hurricane Supplemental funding

4 FY 2008 Enacted includes a 1.56% rescission and a $5 M rescission to prior year funds.

EN

PB


Annual Performance Plan and Budget Overview

recruitment approaches, and focus on attracting applicants who are talented, diverse and
committed to EPA’s mission. In part, EPA also will continue to target developmental resources
to retain a highly-skilled and results-oriented workforce with the right mix of technical expertise,
professional experience and leadership capabilities. A sound, sustained and strategic approach
toward Human Capital will assure EPA and its workforce has sustained mission success.

Workforce

EPA values its world class workforce and its expertise enables us to meet our urgent
responsibilities across a broad range of national and local environmental issues. In FY 2009,
we are making adjustments to EPA’s workforce management strategy that will help us better
align resources, skills, and Agency priorities. A key step in this adjustment is improving the
alignment between the total number of positions authorized and actual FTE utilization. As such,
in FY 2009 EPA proposes to reduce its Agency authorized FTE ceiling by approximately 89.5
positions (below the FY 2008 Enacted FTE Ceiling) to 17,217, which is consistent with the
Agency’s historical FTE levels. The result of these reductions will not impede Agency efforts to
maximize efficiency and effectiveness in carrying out its programs and will not result in an
overall change in the number of FTEs at EPA.


Goal 3: Land Preservation and Restoration

Goal 3: Land Preservation and Restoration

Strategic Goal: Preserve and restore the land by using innovative waste
management practices and cleaning up contaminated properties to reduce risks posed
by releases of harmful substances.

Resource Summary

($ in 000)
Difference
FY 2008 FY 2008 FY 2009 FY 2008EN
23.6% of Budget President’s Enacted President’s to FY 2009
Budget Budget Budget PresBud
1 — Preserve Land $231,785 $237,813 $232,718 -$5,095
2 — Restore Land $1,382,689 $1,403,340 $1,405,043 $1,703
3 - Enhance Science and Research $48,515 $47,440 $53,367 $5,928
Goal 1 Total * $1,662,990 $1,688,592 $1,691,128 $2,536
Workyears ** 4579.3 4574.3 4550.2 -24.1

* Numbers may not add due to rounding.
** Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

Land is one of America’s most valuable resources. If they are not controlled, hazardous
and non-hazardous wastes on the land can migrate to the air, groundwater, and surface water,
contaminating drinking water supplies, causing acute illnesses or chronic diseases, and
threatening healthy ecosystems in urban, rural, and suburban areas. To address these issues,
EPA implements the Land Preservation and Restoration goal with the following approaches—
prevention, protection, and response activities to address risks posed by releases of harmful
substances on land; emergency preparedness, response and homeland security to address
immediate risks to human health and the environment; enforcement and compliance assistance
to determine what needs to be done and who should pay; and sound science and research to
address risk factors and new, innovative solutions.

Prevention, Protection, and Response Activities

EPA leads the country’s activities to prevent and reduce the risks posed by releases of
harmful substances and to preserve and restore land with effective waste management and
cleanup methods. In FY 2009, the Agency is requesting $1,637.8 million to continue to apply
the most effective approach to preserve and restore land by developing and implementing

11


Goal 1: Clean Air and Global Climate Change

Goal 1: Clean Air and Global Climate Change

Strategic Goal: Protect and improve the air so it is healthy to breathe and risks to
human health and the environment are reduced. Reduce greenhouse gas intensity by
enhancing partnerships with businesses and other sectors.

Resource Summary
($ in 000)

Difference
FY 2008 FY 2008 FY 2009 FY 2008EN

13.1% of Budget President's Enacted President's to FY 2009

Budget Budget Budget PresBud

1 - Healthier Outdoor Air $587,200 $644,091 $616,456 -$27,635
2 - Healthier Indoor Air $45,842 $45,582 $43,502 -$2,080
3 - Protect the Ozone Layer $17,121 $16,865 $17,464 $598
4 - Radiation $39,086 $38,254 $41,397 $3,143
5 - Reduce Greenhouse Gas Intensity $122,820 $130,092 $121,063 -$9,029
6 - Enhance Science and Research $98,297 $96,855 $98,700 $1,845
Goal 1 Total * $910,365 $971,739 $938,582 -$33,157
Workyears ** 2610.1 2608.8 2628.1 19.3

* Numbers may not add due to rounding
** Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

EPA implements the Clean Air and Global Climate Change goal through national and
regional programs designed to provide healthier outdoor and indoor air for all Americans,
protect the stratospheric ozone layer, minimize the risks from radiation releases, reduce
greenhouse gas intensity, and enhance science and research. These programs are all founded
on several common principles: using health and environmental risks to set priorities,
streamlining programs through regulatory reforms; encouraging market-based approaches;
facilitating deployment of cost-effective technologies; promoting energy efficiency and clean
energy supply; using sound science, and maintaining partnerships with states, Tribes, local
governments, non-governmental organizations, and industry.

EPA’s key clean air programs — including those addressing particulate matter, ozone,
acid rain, air toxics, indoor air, radiation and stratospheric ozone depletion — focus on some of
the highest health and environmental risks faced by the Agency. These programs have
achieved results. Every year, state and Federal air pollution programs established under the


Goal 4: Healthy Communities and Ecosystems

Goal 4: Healthy Communities and Ecosystems

Strategic Goal: Protect, sustain, or restore the health of people, communities, and
ecosystems using integrated and comprehensive approaches and partnerships.

Resource Summary

($ in 000)

Difference
, FY 2008 FY 2008 FY 2009 FY 2008EN
16.7% of Budget President’s Enacted President’s to FY 2009
Budget Budget Budget PresBud

1 - Chemical, Organism, and
Pesticide Risks $390,946 $387,933 $396,717 $8,784
2 —- Communities $234,851 $239,668 $235,626 -$4,041
3-— Ecosystems $178,088 $220,411 $181,029 -$39,382
4 - Enhance Science and Research $370,176 $379,351 $377,631 -$1,720
Goal 1 Total * $1,174,062 $1,227,363 $1,191,004 -$36,359
Workyears ** 3761.1 3735.6 3749.7 14.1

* Numbers may not add due to rounding.
** Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

In FY 2009, the Environmental Protection Agency will protect, sustain or restore the
health of communities and ecosystems by bringing together a variety of programs, tools,
approaches and resources, including partnerships with stakeholders and Federal, state, Tribal,
and local government agencies. EPA manages environmental risks to watersheds,
communities, homes, and workplaces to protect human health and the environmental integrity of
ecosystems. The Agency employs a mix of regulatory programs and partnership approaches to
achieve results in ways that are efficient, innovative, and sustainable. Ideally, EPA can
implement a strategy of preventing pollution at the source; however, where programs to prevent
pollution or ecosystem damage are not viable, EPA promotes waste minimization, avoidance of
impact on habitat, safe disposal, and remediation.

In managing risk, EPA directs its efforts toward the greatest threats in our communities,
homes, and workplaces, including threats to sensitive populations such as children and the
elderly, and to communities with potential disproportionately high and adverse environmental
and public health effects including minorities and/or low-income communities. In general,
because of their unique anatomy, biological make-up and behavior patterns, children may be
more at risk for exposure to potential toxics. Even older Americans in good health may be at

17


FY 2009

EPA Budget in Brief



Appendix A: Categorical Grants

Tribal General Assistance Program Grants

In FY 2009, EPA’s request includes $57.9 million for the Tribal General Assistance
Program (GAP) to help Federally-recognized tribes and intertribal consortia develop, implement
and assume environmental programs. In FY 2009, 91 percent of Federally-recognized tribes
and intertribal consortia, 526 out of a universe of 572 eligible entities, will have access to an
environmental presence.

Homeland Security Grants

In FY 2009, the request includes $5.0 million for Homeland Security grants to support
states’ efforts to work with drinking water and wastewater systems to develop and enhance
emergency operations plans; conduct training in the implementation of remedial plans in small
systems; and develop detection, monitoring and treatment technology to enhance drinking water
and wastewater security. Fifty-six states and territories are eligible for Homeland Security
grants.

Underground Injection Control (UIC) Grants

In FY 2009, EPA requests $10.9 million for the Underground Injection Control grants
program. Ensuring safe underground injection of waste materials is a fundamental component
of a comprehensive source water protection program. Grants are provided to states that have
primary enforcement authority (primacy) to implement and maintain UIC programs. EPA and
the states will continue to address Classes |, Il, and Ill existing wells determined to be in
significant violation and Class V wells determined to be in violation in FY 2009. EPA and the
states also will close or permit Motor Vehicle Waste Disposal wells (Class V) identified during
FY 2009. In addition, states and EPA will process UIC permit applications for experimental
carbon sequestration projects and gather information from these pilots to facilitate the permitting
of large scale commercial carbon sequestration in the future.

BEACH Act Grants

The FY 2009 request includes $9.9 million for the 35 states and territories with Great
Lakes or coastal shorelines to protect public health at the Nation's beaches. The Beaches
Environmental Assessment and Coastal Health Act (BEACH Act) of October 2000 authorizes
EPA to award grants to help eligible states and territories develop and implement beach
bacteria monitoring and notification programs. These programs inform the public about the risk
of exposure to disease-causing microorganisms in coastal waters (including the Great Lakes).

Non-Point Source Program Grants (NPS — Clean Water Act Section 319)

In FY 2009, EPA requests $184.6 million for Non-Point Source Program grants to states,
territories, and tribes. These grants enable states to use a range of tools to implement their
programs including: both non-regulatory and regulatory programs, technical assistance,
financial assistance, education, training, technology transfer, and demonstration projects. The
request also eliminates the statutory one-third of one-percent cap on Clean Water Act Section
319 Non-point Source Pollution grants that may be awarded to tribes. EPA’s goal is to reduce
annually the amount of runoff of phosphorus, nitrogen, and sediment through 319-funded
projects by 4.5 million pounds, 8.5 million pounds, and 700,000 tons, respectively.


Goal 1: Clean Air and Global Climate Change

reduced emissions of carbon dioxide, methane, and other greenhouse gases with very high
global warming potentials. These partnership programs break down market barriers and
promote the deployment of cost-effective technologies and processes designed to yield
greenhouse gas reductions over the life of the investment. In FY 2009, EPA will continue to
work with other countries and government agencies to support the Methane to Markets
Partnership and Asia-Pacific Partnership on Clean Development and Climate. The FY 2009
Budget Request for the Climate Protection programs totals $98.3 million.

Stratospheric Ozone — Domestic and Montreal Protocol

In FY 2009, EPA’s Domestic Stratospheric Ozone Protection Program will continue to
implement the provisions of the Clean Air Act and the Montreal Protocol on Substances that
Deplete the Ozone Layer (Montreal Protocol), and contribute to the reduction and control of
ozone-depleting substances (ODSs) in the U.S. and lowering health risks to the American public
associated with exposure to UV radiation, including prevention of 6.3 million cases of fatal skin
cancer in the US. The FY 2009 Budget Request for the Stratospheric Ozone: Domestic program
totals $4.7 million. In addition, through the Multilateral Fund of the Montreal Protocol, EPA will
invest in cost-effective projects that are designed to build capacity and eliminate ODS
production and consumption in over 60 developing countries. The Multilateral Fund continues to
support over 5,150 activities in 139 countries, and when fully implemented, will prevent annual
emissions of more than 223,729 metric tons of ODS. Over 80 percent of already agreed-upon
project activities have been implemented to date, with remaining work in these already agreed-
upon projects expected to be fully implemented by 2009. The FY 2009 Budget Request for the
Stratospheric Ozone: Multilateral Fund totals $9.9 million.

Radiation Monitoring

In FY 2009, EPA will continue upgrading the national radiation monitoring system to
expand the population and geographic areas covered, and to increase the speed at which the
system samples the air, analyzes the measurements, and transmits the results. Mobile
transportable monitors will be maintained in ready condition so they can be quickly deployed to
monitor radiation levels at locations near and downwind from the initial point of release. The
Agency will continue to enhance laboratory response capacity and capability to ensure a
minimal level of surge capacity for radiological incidents.

Research

EPA conducts research to provide a scientific foundation for the Agency’s actions to
protect the air all Americans breathe. The Agency’s air research program supports
implementation of the Clean Air Act, especially the National Ambient Air Quality Standards
(NAAQS), which set limits on how much stratospheric ozone, particulate matter, carbon
monoxide, sulfur dioxide, nitrogen oxides, and lead, are allowed in the atmosphere. EPA also
conducts research on ozone and hazardous air pollutants, also known as air toxics.

In FY 2009, the Agency’s air research program will continue research to understand the
sources and composition of air pollution; develop methods for controlling sources’ emissions;
study atmospheric chemistry and model U.S. air quality; investigate Americans’ exposure to air
pollution; and conduct epidemiological, clinical, and toxicological studies of air pollution’s health
effects. In FY 2009, the program will continue to focus on the effects of air pollution near roads
on human health, as well as the development and evaluation of effective mitigation strategies.


Goal 1: Clean Air and Global Climate Change

compliance program including field sampling and lab analysis; and stakeholder outreach. In
addition to these implementation activities, the National Vehicle Fuel Emissions Laboratory
(NVFEL) will need to begin certifying alternative fuels and vehicles.

By FY 2009, U.S. energy production is expected to grow by almost 10 percent from FY
2005 levels. To help ensure clean and affordable energy, EPA will enhance related permitting
efforts. Anticipated upcoming proposals include 75,000 new oil and gas wells on Tribal and
Federal Land, 40 liquefied natural gas terminals, 100+ re-permitting for nuclear power plants
and 25 new nuclear plants.

This expansion in the energy sector will result in increased workload for: air and waters
modeling and monitoring to determine the ambient impacts of energy activities; analysis of
emerging technologies such as carbon sequestration, tidal, wind, biomass, coal liquefaction and
oil shale; effective and early collaboration among states, tribes and Federal agencies to
expedite National Environmental Policy Act (NEPA) reviews; and, EPA direct implementation of
air and water permitting activity on state/Tribal lands where the programs are not authorized and
on Federal lands and offshore areas where the program cannot be authorized.

In FY 2009, EPA and states will begin to fulfill the mandate of the Energy Policy Act to
increase development of domestic energy resources and meet the demands of the large
increase in new energy exploration while ensuring environmentally sound decision-making.
This will involve support for state and tribal work to ensure effective and efficient analysis and
permitting to avoid slowing the pace of new energy projects. The FY 2009 Budget Request
includes $14.0 million to support Permitting for Energy Production.

Reduce Risks to Indoor Air and Radon Programs

The Indoor Air Program characterizes the risks of indoor air pollutants to human health,
develops techniques for reducing those risks, and educates the public about those techniques
and other actions they can take to reduce their risks from indoor air. Through voluntary
partnerships with non-governmental and professional organizations, EPA educates and
encourages individuals, schools, industry, the health-care community, and others to take action
to reduce health risks in indoor environments using a variety of approaches, including national
public awareness and media campaigns, as well as community-based outreach and education.
EPA also uses technology-transfer to improve the design, operation, and maintenance of
buildings — including schools, homes, and workplaces — to promote healthier indoor air. The
FY 2009 Budget Request for the Reduce Risk from Indoor Air program totals $19.9 million. EPA
also carries out a national radon program that encourages and facilitates voluntary national,
regional, state, and Tribal programs and activities that support initiatives targeted to radon
testing and mitigation, as well as to radon resistant new construction. Radon is second only to
smoking as a cause of lung cancer. The FY 2009 Budget Request for the Radon programs
totals $14.0 million.

Climate Protection

For more than a decade, businesses and other organizations have partnered with EPA
through voluntary climate protection programs to pursue common sense approaches to
reducing greenhouse gas emissions and meeting the President's greenhouse gas intensity goal.
Voluntary programs such as Energy Star and SmartWay Transport have increased the use of
energy-efficient products and practices, spurred investment in clean energy development, and


Appendix D: Budget Tables

Summary of Agency Resources by Appropriation
(Dollars in Thousands)

FY 2008 FY 2008 FY 2009
President’s Enacted President’s

Appropriation Account Budget Budget Budget

Science & Technology (S&T) ' $754,506 $760,084 $763,527
Environmental Programs and Management (EPM) $2,298,188 $2,327,962 $2,338,353
Office of Inspector General ' $38,008 $41,099 $39,483
Buildings & Facilities $34,801 $34,258 $35,001
Oil Spill Response $17,280 $17,056 $17,687
Superfund (SF) $1,244,706 $1,253,998 $1,264,233
- Superfund Programs $1,211,431 $1,216,794 $1,230,652
- Inspector General Transfer $7,149 $11,486 $7,164
- Science & Technology Transfer $26,126 $25,718 $26,417
Leaking Underground Storage Tanks $72,461 $105,816 $72,284
State & Tribal Assistance Grants (STAG) $2,744,450 $2,937,051 $2,621,952
Rescission of Prior Year Funds ($5,000) ($5,000) ($10,000)

Agency Total: $7,199,400 $7,472,324 _ $7,142,520

‘ Does not include Superfund transfers--see the Superfund line items below for annual amounts.

D-1


Appendix A: Categorical Grants

template strategies gained in FY 2007 and FY 2008, EPA will continue to partner with states on
implementation in FY 2009.

HIGHLIGHTS:

State & Local Air Quality Management, Radon, and Tribal Air Quality
Management Grants

The FY 2009 request includes $207.0 million for Air State and Local Assistance grants to
support state, local, and Tribal air programs, as well as radon programs. Grant funds for State
and Local Air Quality Management and Tribal Air Quality Management are requested in the
amounts of $185.6 million and $13.3 million, respectively. These funds provide resources to
multi-state, state, local, and Tribal air pollution control agencies for the development and
implementation of programs for the prevention and control of air pollution or for the
implementation of national ambient air standards set to protect public health and the
environment. In FY 2009, EPA will continue to work with state and local air pollution control
agencies to develop or implement state implementation plans (SIPs) for the 8-hour ozone
standard, the fine particle (PM-2.5) standard, and regional haze. States submitted the 8-hour
ozone SIPs to EPA in FY 2007 and will continue with their implementation in FY 2009.
In FY 2009 states will also continue to work on implementation of their PM-2.5 and regional
haze SIPs. EPA will work with Federally-recognized Tribal governments nationwide to continue
development and implementation of tribal air quality management programs. Tribes are active
in protection of the 4 percent of the land mass of the United States over which they have
sovereignty, and work closely with EPA to monitor criteria pollutants and air toxics. Tribes
participate extensively in national monitoring networks, and operate and report data from over
300 monitors. Grants also will be provided to states ($3.9 million) and tribes ($2.4 million) to
help them work with sources to permit new energy projects and ensure that all Federal
environmental laws are considered in the permitting activity. Lastly, this request includes
$8.1 million for Radon grants to continue to focus efforts on priority activities to achieve health
risk reduction.

Pesticide Enforcement, Toxics Substance Compliance, & Sector Program Grants

The FY 2009 request includes $25.6 million to build environmental enforcement
partnerships with states and tribes and to strengthen their ability to address environmental and
public health threats. The enforcement state grants request consists of $18.7 million for
Pesticides Enforcement, $5.1 million for Toxic Substances Enforcement Grants, and $1.8 million
for Sector Grants. State and Tribal enforcement grants will be awarded to assist in the
implementation of compliance and enforcement provisions of the Toxic Substances Control Act
(TSCA) and the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). These grants
support state and Tribal compliance activities to protect the environment from harmful chemicals
and pesticides.

Under the Pesticides Enforcement Grant program, EPA provides resources to states and
Indian tribes to conduct FIFRA compliance inspections and take appropriate enforcement
actions and implement programs for farm worker protection. Under the Toxic Substances
Compliance Grant program, states receive funding for compliance inspections of asbestos and
polychlorinated biphenyls (PCBs). States also received funding for implementation of the state
lead-base paint certification and training, and abatement notification compliance and


Goal 4: Healthy Communities and Ecosystems

advance health-based assessments. The computational toxicology research program’s
strategic direction is guided by three long term goals:

e Improving the linkages in the source-outcome paradigm;
e Providing tools for screening and prioritization of chemicals under regulatory review; and
e Enhancing quantitative risk assessment.

In FY 2009, continued research in the pesticides and toxics research program will
characterize toxicity and pharmacokinetic profiles of perfluoroalkyl chemicals, examine the
potential for selected perfluorinated telomers to degrade to perfluoroctanoic acid or its
precursors, and develop methods and models to forecast the fate of pesticides and byproducts
from source waters through drinking water treatment systems and ultimately to the U.S.
population. The program also will conduct research to develop spatially-explicit probabilistic
models for ecological assessments and evaluate the potential environmental and human health
impacts of genetically engineered crops.

EPA will increase efforts to investigate nanotechnology’s environmental, health, and
safety implications in FY 2009. This research will examine which processes govern the
environmental fate of nanomaterials and what data are available/needed to enable nanomaterial
risk assessment. Research will continue on improving our measurement, understanding, and
control of mercury, with a research focus on the fate and transport of mercury and mercury
compounds, and an evaluation of the effectiveness of the Clean Air Mercury rule. The Agency
will also cultivate the next generation of environmental scientists by awarding fellowships to
pursue higher education in environmentally related fields and by hosting recent graduates at its
facilities.

EPA will continue research to better understand how global change (e.g., climate
change) will affect the environment, including the environmental and human health implications
of greenhouse gas mitigation strategies, and the implications of climate change for the Agency's
fulfillment of its statutory, regulatory and programmatic requirements. The Agency’s climate
change research also includes the development of decision support tools to help resource
managers adapt to a changing climate.

In FY 2009, the Agency will continue to enhance the nation’s preparedness and
response and recovery capabilities for homeland security incidents through research,
development, and technical support activities. EPA will significantly increase its emphasis on
biodefense research related to anthrax including sampling, decontamination, and risk
assessment methods and models to aid first responders in determining the extent of an outdoor
release of anthrax as well as to aid in the identification of appropriate decontamination options.
More specifically, EPA will strengthen its research in the following areas:

e Development and adaptation of methods to test for anthrax including the extent of
contamination and clearance following wide-area decontamination;

e Determination of deposition and adhesion properties of anthrax and its ability to re-
aerosolize from materials common to wide-area settings;

e Development of methods to effectively decontaminate anthrax in wide area
environments while minimizing the generation of waste; and

e Development and adaptation of methods and models for hazard and exposure
assessments needed to determine risk-based clean up goals for anthrax.

24


Appendix A: Categorical Grants

CATEGORICAL PROGRAM GRANTS (STAG)

by National Program and State Grant
(Dollars in Thousands)

FY 2008 FY 2008 FY 2009 Change
President's Enacted President'sB FY 08 EN
NPM / Grant Budet Budget udet to FY09 PB
Air_& Radiation
State and Local Assistance $185,180 $216,825 $185,580 ($31,245)
Tribal Assistance $10,940 $10,769 $13,300 $2,531
Radon $8,074 $7,948 $8,074 $126
$204,194 $235,542 $206,954 ($28,588)
Water
Pollution Control (Section 106) $221,664 $218,206 $221,664 $3,458
Beaches Protection $9,900 $9,746 $9,900 $154
Nonpoint Source (Section 319) $194,040 $200,857 $184,540 ($16,317)
Wetlands Program Development $16,830 $16,567 $16,830 $263
Targeted Watersheds $0 $9,845 $0 ($9,845)
Wastewater Operator Training $0 $0 $0 $0
$442,434 $455,221 $432,934 ($22,287)
Drinking Water
Public Water System Supervision (PWSS $99,100 $97,554 $99,100 $1,546
Underground Injection Control (UIC) $10,891 $10,721 $10,891 $170
Homeland Security $4,950 $4,873 $4,950 $77
$114,941 $113,148 $114,941 $1,793
Hazardous Waste
H.W. Financial Assistance $103,346 $101,734 $103,346 $1,612
Brownfields $49,495 $48,723 $49,495 $772
Underground Storage Tanks $22,274 $2,461 $22,800 $20,339
$175,115 $152,918 $175,641 $22,723
Pesticides _& Toxics
Pesticides Program Implementation $12,970 $12,768 $12,970 $202
Lead $13,564 $13,352 $13,564 $212
Toxic Substances Compliance $5,099 $5,019 $5,099 $80
Pesticides Enforcement $18,711 $18,419 $18,711 $292
$50,344 $49,558 $50,344 $786
Multimedia
Environmental Information $12,850 $9,844 $11,000 $1,156
Pollution Prevention $5,940 $4,863 $4,940 $77
Sector Program (Enf & Comp Assurance) $2,228 $1,209 $1,828 $619
Tribal General Assistance Program $56,925 $56,037 $57,925 $1,888
$77,943 $71,953 $75,693 $3,740
Total Categorical Grants $1,064,971 $1,078,340 $1,056,507 ($21,833)

A-7


Goal 4: Healthy Communities and Ecosystems

areas related to human health, ecosystems, mercury, global change, pesticides and toxics,
endocrine disruptors, computational toxicology, nanotechnology and Homeland Security.

In FY 2009, the Human Health Research Program is working to maintain its successful
program in reducing uncertainties in risk assessment while orienting this work toward
developing and linking indicators of risk along the source-exposure-effects-disease continuum
that can be used to demonstrate reductions in human risk. This strategic shift is designed to
include research that addresses limitations, gaps, and challenges articulated in the 2003 and
2007 Reports on the Environment. Research includes development of sensitive and predictive
methods to identify viable bio-indicators of exposure, susceptibility, and effect that could be
used to evaluate public health impacts at various geospatial and temporal scales.

The Agency’s human health risk assessment (HHRA) research program will implement a
process to identify, compile, characterize, and prioritize new scientific studies into Integrated
Science Assessments (ISAs) of criteria air pollutants to assist EPA’s air and radiation programs
in determining the National Ambient Air Quality Standards (NAAQS), deliver final ISAs for
environmental effects of sulfur oxide and nitrogen oxides, and release a draft ISA for carbon
monoxide. In addition, the HHRA research program will complete multiple human health
assessments of high priority chemicals for interagency review or external peer review and post
several completed human health assessments in the integrated risk information system.

In order to assess the benefits of ecosystem services to human and ecological well-
being, it is important to define ecosystem services and their implications, measure, monitor and
map those services at multiple scales over time, develop predictive models for quantifying the
changes in ecosystem services, and develop decision platforms for decision makers to protect
and restore ecosystem services through informed decision making. This represents a transition
for the Ecosystems research program in FY 2009. To meet these objectives, the Agency’s
ecosystems research will build on existing work in environmental monitoring and assessment,
landscape ecology, modeling ecological stressor-response relationships, and assessing
vulnerability to natural and human stressors.

Over the last decade, the endocrine disruptor research program conducted the
underlying research, developed and standardized protocols, prepared background materials for
transfer, briefed Agency advisory committees, participated on international committees on
harmonization of protocols, and participated in validation of 19 different in vitro and/or in vivo
assays for the development and implementation of the Agency’s two tiered Endocrine
Disruptors Screening Assay. In FY 2009, research will continue in the following areas:

e Development of novel in vitro assays as improved alternatives that may further reduce
the numbers of animals used;

e Finalization of the Tier 2 amphibian developmental/reproductive assay and the fish 2
generation study for validation; and

e Leadership on the guidance document and multi-laboratory standardization of the Tier 2
mammalian protocol.

In FY 2009, the National Center for Computational Toxicology (NCCT) will play a critical

role in coordinating and implementing these activities across the Agency. In addition, in
FY 2009, greater emphasis will be placed on using systems biology-based approaches to

23


Appendix D: Budget Tables

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
Infrastructure Assistance: Mexico Border $10,000.0 $19,688.0 $10,000.0 -$9,688.0
Categorical Grants $1,064,971.0  $1,078,339.0 — $1,056,507.0 -$21,832.0
Categorical Grant: Beaches Protection $9,900.0 $9,746.0 $9,900.0 $154.0
Categorical Grant: Brownfields $49,495.0 $48,723.0 $49,495.0 $772.0
Categorical Grant: Environmental Information $12,850.0 $9,844.0 $11,000.0 $1,156.0
Categorical Grant: Hazardous Waste Financial
Assistance $103,346.0 $101,734.0 $103,346.0 $1,612.0
Categorical Grant: Homeland Security $4,950.0 $4,873.0 $4,950.0 $77.0
Categorical Grant: Lead $13,564.0 $13,352.0 $13,564.0 $212.0
Categorical Grant: Nonpoint Source (Sec. 319) $194,040.0 $200,857.0 $184,540.0 -$16,317.0
Categorical Grant: Pesticides Enforcement $18,711.0 $18,419.0 $18,711.0 $292.0
Categorical Grant: Pesticides Program
Implementation $12,970.0 $12,768.0 $12,970.0 $202.0
Categorical Grant: Pollution Control (Sec. 106) $221,664.0 $218,206.0 $221,664.0 $3,458.0
(Monitoring Grants) ($78,500.0) ($18,211.0) ($18,500.0) ($289.0)
Categorical Grant: Pollution Prevention $5,940.0 $4,863.0 $4,940.0 $77.0
Categorical Grant: Public Water System
Supervision (PWSS) $99,100.0 $97,554.0 $99, 100.0 $1,546.0
Categorical Grant: Radon $8,074.0 $7,948.0 $8,074.0 $126.0
Categorical Grant: Sector Program $2,228.0 $1,209.0 $1,828.0 $619.0
Categorical Grant: State and Local Air Quality
Management $185, 180.0 $216,825.0 $185,580.0 -$31,245.0
Categorical Grant: Targeted Watersheds $0.0 $9,844.0 $0.0 -$9,844.0
Categorical Grant: Toxics Substances
Compliance $5,099.0 $5,019.0 $5,099.0 $80.0
Categorical Grant: Tribal Air Quality
Management $10,940.0 $10,769.0 $13,300.0 $2,531.0
Categorical Grant: Tribal General Assistance
Program $56,925.0 $56,037.0 $57,925.0 $1,888.0
Categorical Grant: Underground Injection
Control (UIC) $10,891.0 $10,721.0 $10,891.0 $170.0
Categorical Grant: Underground Storage Tanks $22,274.0 $2,461.0 $22,800.0 $20,339.0
Categorical Grant: Wetlands Program
Development $16,830.0 $16,567.0 $16,830.0 $263.0
Total, State and Tribal Assistance Grants $2,744,450.0  $2,937,051.0  — $2,621,952.0 -$315,099.0

D-8

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program


Annual Performance Plan and Budget Overview

Environmental Protection Agency’s
FY 2009 Budget by Goal

Total Agency: $7,143 Million

Goal 5
10.5% Goal 1
Goal 4
16.7%
$1,691 M
Goal 3
23.6%

[Goal 1: Clean Air and Global Climate Change

Goal 2: Clean and Safe Water

O Goal 3: Land Preservation and Restoration

Goal 4: Healthy Communities and Ecosystems

i Goal 5: Compliance and Environmental Strewardship

Note: Dollar totals in chart exclude a $10 million rescission to prior year funds

vi


Goal 3: Land Preservation and Restoration

volunteers in the Response Support Corps (RSC) and/or as part of an Incident Management
Team (IMT) and also will continue to participate in multi-agency training and exercises.

In FY 2009, EPA will build the Environmental Laboratory Response Network (eLRN)
through the improvement of an electronic data deliverable for use by all eLRN laboratories.
EPA also will continue to maximize the effectiveness of its involvement in national security
events through pre-deployments of assets such as emergency response personnel and field
detection equipment.

EPA also will maintain and improve the Emergency Management Portal (EMP).
FY 2009 will be the first year for complete integration of the basic management modules
(i.e., environmental assessment, equipment, personnel, and decontamination). EPA will
continue to manage, collect, and validate new information for new and existing Weapons of
Mass Destruction (WMD) agents as new decontamination techniques are developed or as other
information emerges from the scientific community.

Enforcement

Enforcement authorities play a unique role under the Superfund program: they are used
to leverage private-party resources to conduct a majority of the cleanup actions and to
reimburse the Federal government for cleanups financed by appropriations. In FY 2009, the
Agency is requesting $173.9 million to support enforcement activities at Federal and non-
Federal Superfund sites. The Superfund program’s “enforcement first” policy ensures that sites
with viable potentially responsible parties (PRPs) are cleaned up by those parties, allowing EPA
to focus appropriated resources on sites where viable PRPs either do not exist or lack funds or
capabilities needed to conduct the cleanup. In tandem with this approach, various reforms have
been implemented to increase fairness, reduce transaction costs, and promote economic
development and make sites available for appropriate reuse.” The Department of Justice
supports EPA’s Superfund Enforcement program through negotiations and judicial actions to
compel PRP cleanup and litigation to recover Trust Fund monies spent.

EPA also works to ensure that required legally enforceable institutional controls and
financial assurance instruments are in place and adhered to at Superfund sites and at facilities
subject to RCRA Corrective Action to ensure the long-term protectiveness of cleanup actions.

EPA has ongoing cleanup and property transfer responsibilities at some of the Nation’s
most contaminated Federal properties, which range from realigning and closing military
installations and former military properties containing unexploded ordnance, solvents, and other
industrial chemicals to Department of Energy sites containing nuclear waste. EPA’s Superfund
Federal Facilities Response and Enforcement program helps Federal and local governments,
tribes, states, redevelopment authorities and the affected communities ensure contamination at
Federal or former Federal properties is addressed in a manner that protects human health and
the environment.®

7 For more information regarding EPA’s enforcement program and its various components, please refer to
http://www.epa.gov/compliance/cleanup/superfund/,

® For more information on the Superfund Federal Facilities Response and Enforcement program, please refer to
hittp://www.epa.gov/fedfac.

14


Appendix C: Trust Funds

BRAC V facilities. If EPA services are required at levels above its base for BRAC V
installations, the Agency will require reimbursement from DOD for the costs the Agency incurs
to provide those additional services.

Leaking Underground Storage Tanks

The FY 2009 President's Budget requests $72 million and 75 total workyears for the
Leaking Underground Storage Tank (LUST) program. Not less than 80 percent of LUST
appropriated funds will be used in cooperative agreements for states and tribes to carry out
specific purposes. EPA will continue to work with the states to achieve more cleanups
completed each year, and reduce the FY 2007 backlog of 108,766 cleanups not yet completed.
Since the beginning of the Underground Storage Tank (UST) program, EPA has cleaned up
almost 77 percent (or 365,361) of all reported releases. In FY 2009, the LUST program will
achieve 30 cleanups in Indian Country that meet risk-based standards for human exposure and
groundwater migration.


Appendix D: Budget Tables

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
Building and Facilities

Homeland Security $7,870.0 $7,747.0 $8,070.0 $323.0
Operations and Administration $26,931.0 $26,511.0 $26,931.0 $420.0
Total, Building and Facilities $34,801.0 $34,258.0 $35,001.0 $743.0

Hazardous Substance Superfund
Air Toxics and Quality $2,373.0 $2,342.0 $2,414.0 $72.0
Audits, Evaluations, and Investigations $7,149.0 $11,486.0 $7,164.0 -$4,322.0
Compliance $1,348.0 $1,346.0 $1,360.0 $14.0
Enforcement $185,411.0 $189,816.0 $185,789.0 -$4,027.0
(Environmental Justice) ($757.0) ($745.0) ($757.0) ($12.0)
(Superfund: Enforcement) ($161,610.0) — ($164,845.0) — ($163,678.0) (-$1,167.0)
(Superfund: Federal Facilities Enforcement) ($9,843.0) ($9, 726.0) ($10,225.0) ($499.0)
Homeland Security $47,731.0 $47,042.0 $59,549.0 $12,507.0
(Decontamination) ($10,725.0) ($10,566.0) ($10,818.0) ($252.0)
(Laboratory Preparedness and Response) ($6,064.0) ($5,971.0) ($9,589.0) ($3,618.0)
Information Exchange / Outreach $1,588.0 $1,565.0 $1,433.0 -$132.0
IT / Data Management / Security $17,130.0 $16,863.0 $17,673.0 $810.0
Legal / Science / Regulatory / Economic Review $1,443.0 $1,565.0 $1,477.0 -$88.0
Operations and Administration $131,992.0 $130,092.0 $135,536.0 $5,444.0
(Rent) ($44,997.0) ($44,295.0) ($45,353.0) ($1,058.0)
(Utilities) ($2,466.0) ($2,428.0) (3,042.0) ($614.0)
(Security) (86,767.0) ($6,661.0) ($6,524.0) ($137.0)
Research: Human Health and Ecosystems $3,972.0 $3,910.0 $3,325.0 -$585.0
Research: Land Protection $20,081.0 $19,768.0 $21,021.0 $1,253.0
Superfund Cleanup $824,488.0 $828,203.0 $827,492.0 -$711.0
Superfund: Emergency Response and Removal $191,880.0 $190,011.0 $193,853.0 $3,842.0
Superfund: EPA Emergency Preparedness $9,318.0 $9,195.0 $9,504.0 $309.0
Superfund: Federal Facilities $31,879.0 $31,447.0 $31,440.0 -$7.0
Superfund: Remedial $584,836.0 $591,078.0 $586,120.0 -$4,958.0
Superfund: Support to Other Federal Agencies $6,575.0 $6,472.0 $6,575.0 $103.0
Total, Hazardous Substance Superfund $1,244,706.0 $1,253,998.0 $1,264,233.0 $10,235.0

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program

D-6


Goal 5: Compliance and Environmental Stewardship

EPA will also continue to promote environmental performance through the
Environmental Results Program (ERP), a state-run program promoting environmental
performance and efficiency through assistance and incentives to both states and businesses. In
FY 2009, EPA will support the growing demand for the ERP program beyond the 16 States and
10 sectors currently active in the program.

Finally, EPA will continue the State Innovation Grant program in FY 2009, which
provides support to states, allowing them to develop their own innovative approaches, including
flexible permitting, ERP, and environmental leadership programs (e.g. PT). Measurement and
program evaluation also will continue to be priorities.

Improve Human Health and the Environment in Indian Country

Since adopting the EPA Indian Policy in 1984, EPA has worked with tribes on a
government-to-government basis in recognition of the Federal government's trust responsibility
in Federally- recognized tribes. EPA will continue to work with Tribal communities in FY 2009
with a budget of $80.2 million directed to Tribal programs. Under Federal environmental
statutes, the Agency is responsible for protecting human health and the environment in Indian
Country. EPA’s American Indian Environmental Office (AIEO) leads an Agency wide effort to
work with tribes, Alaska Native Villages, and inter-tribal consortia to fulfill this responsibility.
EPA’s strategy for achieving this objective has three major components:

e Establish an Environmental Presence in Indian Country: The Agency will continue
to provide funding through the Indian General Assistance Program (GAP) so each
Federally recognized tribe can establish an environmental presence.

« Provide Access to Environmental Information: EPA will provide the information
tribes need to meet EPA and Tribal environmental priorities, as well as characterize the
environmental and public health improvements that result from joint actions.

« Implementation of Environmental Goals: The Agency will provide opportunities for the
implementation of Tribal environmental programs by tribes, or directly by EPA, as
necessary.

In FY 2009, GAP grants will build tribal environmental capacity to assess environmental
conditions, utilize available information, and build an environmental program tailored to tribes’
needs. The grants will develop environmental education and outreach programs, develop and
implement integrated solid waste management plans, and alert EPA to serious conditions that
pose immediate public health and ecological threats. Through GAP program guidance, EPA
emphasizes outcome based results.

Sustainability

In total, the Agency proposes $51.2 million to enhance capacity for sustainability through
science and research. EPA has developed and evaluated tools and technologies to monitor,
prevent, control, and clean up pollution throughout its history. Since the Pollution Prevention
Act of 1990, the Agency has increasingly focused on preventative and sustainable approaches
to health and environmental problems. EPA’s efforts in this area support research specifically
designed to address the issue of advancing sustainability goals — EPA’s Science and
Technology for Sustainability (STS) program.

31


Goal 5: Compliance and Environmental Stewardship

Sustainable approaches require: innovative design and production techniques that
minimize or eliminate environmental liabilities; integrated management of air, water, and land
resources; and changes in the traditional methods of creating and distributing goods and
services. And in addition to conducting research related to human health and environmental
threats, EPA is committed to promoting sustainability—achieving economic prosperity while
protecting natural systems and quality of life for the long term.

In FY 2009, EPA’s Sustainability research program will embark on a new effort that is
aimed at creating a suite of science-based sustainability metrics that are readily understood by
the public. This work will address both large and small systems. In addition, the People,
Prosperity, and Planet Award will support up to 50 student design projects from around the
country, focusing on challenges in areas such as materials and chemicals, energy, resources,
and water.

Recognizing that environmental policy and regulatory decisions will only be as good as
the science upon which they are based, EPA makes every effort to ensure that its science is of
the highest quality and relevance, thereby, providing the basis for sound environmental results.
EPA uses the Research and Development Investment Criteria of quality, relevance, and
performance in its decision-making processes through (a) the use of research strategies and
plans, (b) peer review, and (c) program review and evaluation by the Board of Scientific
Counselors (BOSC) and the Science Advisory Board

32


Appendix B: Infrastructure Finance

Mexico Border

The President’s Budget includes a total of $10.0 million for water infrastructure projects
along the U.S./Mexico Border. The goal of this program is to reduce environmental and human
health risks along the U.S./Mexico Border. EPA’s U.S./Mexico Border program provides funds
to support the planning, design and construction of high priority water and wastewater treatment
projects along the border. The Agency’s goal is to provide protection of people in the U.S.-
Mexico border area from health risks by increasing the number of homes connected to potable
water supply and wastewater collection and treatment systems.

Rescission of Balances from Prior Years

EPA will continue to review old unliquidated obligations for potential rescission.
In FY 2009, EPA will rescind $10.0 million from no longer viable projects.


Goal 4: Healthy Communities and Ecosystems

In addressing chemicals that have entered the market before the inception of the New
Chemical Review program, EPA will continue to implement its voluntary High Production
Volume (HPV) Chemicals program. The HPV Chemicals Program challenges industry to
develop chemical hazard data on existing chemicals that it chooses to “sponsor.” EPA will
make data publicly available for approximately 1,800 HPV chemicals sponsored under the
program and issue initial risk screening reports for the highest priority of those chemicals.
Complementing HPV is the Voluntary Children’s Chemical Evaluation Program (VCCEP), a
high-priority screening program targeting existing chemicals believed to have particular impact
on children’s health.

The Agency will continue to manage its programs to address specific chemicals and
toxics of concern, including lead, mineral fibers, mercury, polychlorinated biphenyls (PCBs),
perfluorooctanoic acid (PFOA), and persistent, bioaccumulative and toxic (PBT) chemicals. The
Lead Program is focusing efforts on reducing lead hazards, and in FY 2009 will implement a
final regulation to address lead-safe work practices for renovation, repair and painting activities
in homes with lead-based paint. The program also will continue to improve methods to reach
vulnerable populations and communities with a high concentration of children with elevated
blood-lead levels and emphasize grant-supported activities such as state-implemented lead-
based paint training and certification programs.

Water Programs

EPA’s ecosystem protection programs encompass a wide range of approaches that
address specific at-risk regional areas and larger categories of threatened systems, such as
estuaries and wetlands. Locally generated pollution, combined with pollution carried by rivers
and streams and through air deposition, can accumulate in these ecosystems and degrade
them over time. Large water bodies, such as the Gulf of Mexico, the Great Lakes, and the
Chesapeake Bay, have been exposed to substantial pollution over many years. Coastal
estuaries and wetlands are also vulnerable. As the populations in coastal regions grow, the
challenges to preserve and protect these important ecosystems increase. Working with
stakeholders, EPA has established special programs to protect and restore these unique
resources.

In FY 2009, EPA will continue cooperation with Federal, state and Tribal governments
and other stakeholders to achieve the President's goal, set in 2004, to restore, improve, and
protect three million acres of wetlands by 2009. FY 2009 funding supports and monitors all
28 NEPs in implementing approved Comprehensive Conservation and Management Plans
(CCMPs), which identify more than 2,000 priority actions needed to protect and restore the
estuaries. The FY 2009 budget for NEPs and coastal watersheds is $17.2 million.

The Great Lakes Program ecosystem’s FY 2009 budget request continues support of
strategic Great Lakes activities pursuant to Executive Order 13340 and the Great Lakes Water
Quality Agreement. The program will monitor ecosystem indicators; support toxics reduction
through contaminated sediment remediation and pollution prevention; protect and restore
habitat; and address strategic issues such as aquatic invasive species and investigation of the
Lake Erie dead zone and the decline of Diporeia, a key lower-food web organism. The FY 2009
request to implement the Great Lakes Legacy Act continues to support the cleanup of
contaminated sediments.

20


Appendix C: Trust Funds

Administration, and the Department of the Interior, will provide support to the Agency for
Superfund cleanups.

Of the total funding requested, $186 million and 1,093 total workyears are for Superfund
enforcement related activities. One of the Superfund program’s primary goals is to have
responsible parties pay for and conduct cleanups at abandoned or uncontrolled hazardous
waste sites. The program focuses on maximizing all aspects of Potentially Responsible Party
(PRP) participation; including reaching a settlement with or taking an enforcement action by the
time of a Remedial Action start at 90 percent of non-Federal Facility Superfund sites.

The Agency has also been encouraging the establishment and use of Special Accounts,
which provide EPA with the ability to clean up sites using funds provided by responsible parties.
At sites with multiple PRPs, funds recovered from individual responsible parties and placed in
special accounts can be provided to other PRP(s) as an incentive to perform cleanup work they
might not be willing to perform, or used by the agency to fund cleanup. The result is the Agency
can preserve appropriated Trust Fund dollars for other sites where there are no viable PRPs.
Where PRP negotiations and previous enforcement actions fail, EPA uses its appropriation to
cleanup sites and then seeks to recover those costs from PRPs.

The FY 2009 President's Budget also includes resources supporting Agencywide
resource management and control functions. This includes essential infrastructure, contract
and grant administration, and financial accounting and other fiscal operations.

In addition, the Agency provides funds for Superfund program research and auditing.
The President's Budget requests $26 million and 110 total workyears to be transferred to
Research and Development for innovative cleanup technology testing. The Superfund research
program is driven by program office needs to reduce the cost of cleaning up Superfund sites,
improve the efficiency of characterizing and remediating sites, and reduce the scientific
uncertainties for improved decision-making at Superfund sites. The President's Budget also
requests $7 million and 44 total workyears to be transferred to the Inspector General for
program auditing.

Base Realignment and Closure Act

The FY 2009 President’s Budget requests 76 reimbursable workyears to conduct the
Base Realignment and Closure (BRAC) program. Since 1993, EPA has worked with the
Department of Defense (DOD) and the states’ environmental programs to make property
environmentally acceptable for transfer, while protecting human health and the environment at
realigning or closing military installations. Between 1988 and 2005, over 500 major military
installations representing the Army, Navy, Air Force, and Defense Logistics Agency have been
slated for realignment or closure. Under the first four rounds of BRAC (BRAC I-IV), 107 of those
sites were identified as requiring accelerated cleanup. EPA’s participation in the acceleration
process of the first four rounds of BRAC has been funded by an interagency agreement which
expires on September 30, 2011. The accelerated cleanup process strives to make parcels
available for reuse as quickly as possible, by transfer of uncontaminated or remediated parcels,
lease of contaminated parcels where cleanup is underway, or “early transfer” of contaminated
property undergoing cleanup. Seventy-two Federal facilities currently listed on the NPL were
identified under the fifth round of BRAC (BRAC V) as closing, realigning, or gaining personnel.
The FY 2009 request does not include support for BRAC-related services to DOD at


Appendix D; Budget Tables

Resources by Program / Project

(Dollars in Thousands)

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
Leaking Underground Storage Tanks
Compliance $688.0 $709.0 $753.0 $44.0
IT / Data Management / Security $177.0 $174.0 $162.0 $12.0
Operations and Administration $2,171.0 $2,137.0 $2,201.0 $64.0
(Rent) ($696.0) ($685.0) ($696.0) ($11.0)
Research: Land Protection $660.0 $650.0 $413.0 -$237.0
Underground Storage Tanks (LUST / UST) $68,765.0 $102,146.0 $68,755.0 -$33,391.0
(LUST/UST) ($10,558.0) ($10,393.0) ($10,548.0) ($155.0)
(LUST Cooperative Agreements) ($58,207.0) ($61,237.0) ($58,207.0) (-$3,030.0)
(EPAct & Related Authorities Implemention) ($0.0) ($30,516.0) ($0.0) (-$30,516.0)
Total, Leaking Underground Storage Tanks $72,461.0 $105,816.0 $72,284.0 -$33,532.0
Oil Spill Response
Compliance $291.0 $286.0 $303.0 $17.0
Enforcement $2,065.0 $2,072.0 $2,233.0 $161.0
IT/ Data Management / Security $34.0 $33.0 $24.0 -$9.0
Oil $13,499.0 $13,290.0 $13,927.0 $637.0
Operations and Administration $490.0 $488.0 $496.0 $8.0
(Rent) ($438.0) ($431.0) ($438.0) ($7.0)
Research: Land Protection $901.0 $887.0 $704.0 -$183.0
Total, Oil Spill Response $17,280.0 $17,056.0 $17,687.0 $631.0
State and Tribal Assistance Grants
Infrastructure Assistance: Clean Water SRF $687,554.0 $689,080.0 $555,000.0 -$134,080.0
Infrastructure Assistance: Drinking Water SRF $842, 167.0 $829,029.0 $842,167.0 $13,138.0
Congressionally Mandated Projects $0.0 $143,723.0 $0.0 -$143,723.0
Infrastructure Assistance: Alaska Native
Villages $18,500.0 $24,610.0 $15,500.0 -$9,110.0
Brownfields Projects $89,258.0 $93,518.0 $93,558.0 $40.0
Diesel Emissions Reduction Grant Program $35,000.0 $49,220.0 $49,220.0 $0.0
CA Emission Reduction Project Grants $0.0 $9,844.0 $0.0 -$9,844.0

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program

D-7


Page Intentionally Blank


Appendix A: Categorical Grants

completing the construction of final remedies at 100 of these facilities also are targeted for
FY 2009.

Brownfields Grants

In FY 2009, EPA requests $49.5 million to continue the Brownfields grant program that
provides assistance to states and tribes to develop and enhance their state and Tribal response
programs. This funding will help states and tribes develop legislation, regulations, procedures,
and guidance, to establish or enhance the administrative and legal structure of their response
programs. In addition, grant funding will support technical outreach to address environmental
justice issues and Brownfields research.

Water Pollution Control (Clean Water Act Section 106) Grants

The FY 2009 EPA request includes $221.7 million for Water Pollution Control grants.
These funds improve water quality standards through National Pollution Discharge Elimination
System (NPDES) permitting, enhanced water quality monitoring activities and Total Maximum
Daily Load (TMDL) development. EPA will work with states to implement the new rules
governing discharges from Concentrated Animal Feeding Operations (CAFOs). States and
authorized tribes will continue to review and update their water quality standards as required by
the Clean Water Act. The Agency’s goal is that 83 percent of state submissions will be
approvable in 2009. EPA also encourages states to continually review and update the water
quality criteria in their standards to reflect the latest scientific information from EPA and other
sources. EPA's goal for 2009 is that 68 percent of states will have updated their standards to
reflect the latest scientific information in the past three years. In FY 2009, $18.5 million will be
designated for states and tribes that participate in collecting statistically valid water monitoring
data and implement enhancements in their water monitoring programs.

Wetlands Grants

In FY 2009, the request includes $16.8 million for Wetlands Program grants. Through
Wetlands Program Development Grants, states, tribes, and local governments receive technical
and financial assistance that will support the Administration’s goal of protecting, restoring, and
enhancing 3 million acres of wetlands. These grants will do this through the development and
implementation of state and Tribal wetland programs that improve water quality in watersheds
throughout the country as well as assist private landowners, educate local governments, and
monitor and assess wetland quantity and quality.

Public Water System Supervision Grants

In FY 2009, EPA requests $99.1 million for Public Water System Supervision (PWSS)
grants. These grants provide assistance to implement and enforce National Primary Drinking
Water Regulations to ensure the safety of the Nation's drinking water resources and to protect
public health. In FY 2009, the Agency will emphasize that states use their PWSS funds to
ensure that drinking water systems of all sizes achieve or remain in compliance and drinking
water systems of all sizes are meeting new regulatory requirements, e.g., Long Term 2
Enhanced Surface Water Treatment Rule and Ground Water Rule.


Appendix A: Categorical Grants

enforcement program. The funds will complement other Federal program grants for building
state capacity for lead abatement, and enhancing compliance with disclosure, certification and
training requirements. Under the Sector program grants, EPA builds environmental
partnerships with states and tribes to strengthen their ability to address environmental and
public health threats, including contaminated drinking water, pesticides in food, hazardous
waste, toxic substances, and air pollution. These grants also support state agencies
implementing authorized, delegated, or approved environmental programs.

Pesticides Program Implementation Grants

The FY 2009 request includes $13.0 million for Pesticides Program Implementation
grants. These resources will assist states, tribes, and partners with pesticide worker safety
activities, protection of endangered species and water sources, and promotion of environmental
stewardship approaches to pesticide use. In addition, the Agency provides grants to promote
stronger Tribal pesticide programs. EPA’s mission as related to pesticides is to protect human
health and the environment from pesticide risk and to realize the value of pesticide availability
by considering the economic, social and environmental costs and benefits of the use of
pesticides. Pesticides Program Implementation Grants help state programs stay current with
changing requirements.

Lead Grants

The FY 2009 request includes $13.6 million for Lead grants. This funding will support
the development of authorized programs, including work under the new Lead Rule, in both
states and tribes to prevent lead poisoning through the training of workers who remove lead-
based paint, the accreditation of training programs, the certification of contractors, and
renovation education programs. Another activity that this funding will support is the collection of
lead data to determine the nature and extent of the lead problem within an area so that states,
tribes and the Agency can better target remaining areas of high risk. In FY 2009, EPA expects
to reduce the number of child lead poisoning cases to 90,000 which would put the Agency on
target to eliminate childhood lead poisoning as a public health concern by 2010.

In FY 2009, EPA will continue to award Targeted Grants to Reduce Childhood Lead
Poisoning. These grants are available to a wide range of applicants, including state and local
governments, Federally-recognized Indian tribes and intertribal consortia, territories, institutions
of higher learning, and nonprofit organizations. In addition, EPA will continue a grant program
initiated in FY 2007 which focuses on low-income communities through grants to national
organizations engaged in working with these communities. This grant program is designed to
help national and community organizations reach under-served populations that may have a
disproportionate number of children with elevated blood lead levels.

Pollution Prevention Grants

The FY 2009 request includes $4.9 million for Pollution Prevention grants. The program
provides grant funds to deliver technical assistance to small and medium-sized businesses.
The goal is to assist businesses and industries with identifying improved environmental
strategies and solutions for reducing waste at the source. The program demonstrates that
source reduction can be a cost-effective way of meeting or exceeding Federal and state
regulatory requirements. In FY 2009, EPA is targeting a reduction of 494 million pounds of


Page Intentionally Blank


Goal 2: Clean and Safe Water

Goal 2: Clean and Safe Water

Strategic Goal: Ensure drinking water is safe. Restore and maintain oceans, watersheds,
and their aquatic ecosystems to protect human health, support economic and recreational
activities, and provide healthy habitat for fish, plants, and wildlife.

Resource Summary

($ in 000)
Difference
> FY 2008 FY 2008 FY 2009 FY 2008EN
36.1% of Budget President’s Enacted President’s to FY 2009
Budget Budget Budget PresBud
1 - Protect Human Health $1,156,552 $1,183,199 $1,161,766 -$21,433
2 - Protect Water Quality $1,422,049 $1,536,959 $1,286,410 -$250,549
3 - Enhance Science and Research $135,906 $134,624 $132,528 -$2,096
Goal 2 Total * $2,714,507 $2,854,782 $2,580,704 -$274,078
Workyears ** 2901.8 2901 2863.4 -37.6

* Numbers may not add due to rounding.
** Agency authorized FTE levels are being aligned with actual utilization. See workforce section in the
overview.

EPA implements the Clean and Safe Water goal through programs designed to provide
improvements in the quality of surface waters and drinking water. In FY 2009, EPA will work
with states and tribes to continue to accomplish measurable improvements in the safety of the
nation’s drinking water and in the conditions of rivers, lakes, and coastal waters. With the help
of these partners, EPA expects to make important progress in these areas and support
additional focused water initiatives, including carbon sequestration, energy permitting, water
security, and sustainable infrastructure.

The National Water Program will continue to place special emphasis on sustainable
infrastructure and watershed stewardship, through its “four pillars” program, specifically focusing
on innovative financing and leveraging for infrastructure sustainability, banking for wetlands
conservation, and trading among point sources and non-point sources for water quality
upgrades. In FY 2009, the Agency will continue advancing the water quality monitoring initiative
and a water quality standards strategy under the Clean Water Act, as well as, important rules
and activities under the Safe Drinking Water Act. Related efforts to improve monitoring and
surveillance will help advance water security nationwide.


Appendix C: Trust Funds

Trust Funds
(Dollars in Millions)
FY 2008 FY 2008 FY 2009
President’s Enacted President’s
Budget" Budget’ Budget"
$ FTE $ FTE $ FTE
Superfund? $1,211 3,057 $1,217 |_ 3,057 $1,231 3,032
Inspector General (Transfers) $7 44 $11 44 $7 44
Research & Development
(Transfers) $26 105 $26 105 $26 110
Superfund Total $1,245 3,206 $1,254 | 3,206 $1,264 | 3,186
Base Realignment and Closure? $0 78 $0 78 $0 76
LUST $72 75 $106 75 $72 75
Trust Funds Total: $1,317 | 3,359] $1,360 | 3,359 $1,337 | 3,337

‘Totals may not add due to rounding.

? Includes about $26 million for the Department of Justice in FY 2008 and approximately $24 million in FY
2009.

3 Funding for reimbursable FTE provided by the Department of Defense via an Interagency Agreement.

Superfund

In FY 2009, the President's Budget requests a total of $1,264 million in discretionary
budget authority and 3,186 total workyears for Superfund. Currently, 95 percent of the 1,569
sites on the Superfund National Priorities List (NPL) are either undergoing cleanup construction,
are completed, or are deleted.

Of the total funding requested for Superfund, $827 million and 1,415 total workyears are
for Superfund cleanups. The Agency’s Superfund cleanup program addresses public health
and environmental threats from uncontrolled releases of hazardous substances. The Agency
expects to demonstrate significant progress in reducing risks to human health and the
environment. In FY 2009, EPA and its partners anticipate completing construction activities at
35 Superfund NPL sites to achieve the overall goal of 1,095 total construction completions by
the end of FY 2009.

The Agency works with several Federal agencies that provide essential services in areas

where the Agency does not possess the specialized expertise. In FY 2009, other Federal
agencies, including the United States Coast Guard, the National Oceanic and Atmospheric

C-1



Appendix D; Budget Tables

Resources by Program / Project

(Dollars in Thousands)

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
Science & Technology
Air Toxics and Quality $92,960.0 $96,015.0 $97,316.0 $1,301.0
Climate Protection Program $13,104.0 $18,331.0 $11,402.0 -$6,929.0
Enforcement $15,075.0 $14,882.0 $15,557.0 $675.0
Homeland Security $66,948.0 $54,135.0 $73,935.0 $19,800.0
(Water Sentinel) ($21,884.0) ($71,705.0) ($22,637.0) ($10,932.0)
(Decontamination) ($20,738.0) ($20,444.0) ($28,805.0) ($8,361.0)
(Laboratory Preparedness and Response) ($600.0) ($597.0) ($500.0) ($91.0)
(Safe Buildings) ($4,000.0) ($1,969.0) ($2,000.0) ($31.0)
Indoor Air $1,216.0 $1,199.0 $1,231.0 $32.0
IT / Data Management / Security $3,499.0 $3,453.0 $3,859.0 $406.0
Operations and Administration $73,859.0 $72,707.0 $74,884.0 $2,177.0
(Rent) ($35,521.0) ($34,967.0) ($35,521.0) ($554.0)
(Utilities) ($18,392.0) ——($18,105.0) —«($18,547.0) ($442.0)
(Security) ($11,179.0) ($71,005.0) ($71,989.0) ($984.0)
Pesticides Licensing $5,881.0 $5,802.0 $6,164.0 $362.0
Research: Clean Air $97,962.0 $99,681.0 $96,953.0 -$2,728.0
(Research: Global Change) ($16,908.0) ($19,688,0) ($16,365.0) (-$3,323.0)
Research: Clean Water $105,002.0 $104,348.0 $101,462.0 -$2,886.0
Research / Congressional Priorities $0.0 $5,316.0 $0.0 -$5,316.0
Research: Human Health and Ecosystems $217,574.0 $223,663.0 $217,317.0 -$6,346.0
(Research: Computational Toxicology) ($15,103.0) ($12,135.0) ($14,863.0) ($2,728.0)
(Research: Endocrine Disruptor) ($10,131.0) ($10,317.0) ($9,502.0) (-$875.0)
(Research: Fellowships) ($8,438.0) ($9,845.0) ($8,887.0) ($958.0)
Research: Land Protection $10,737.0 $10,591.0 $13,350.0 $2,759.0
Research: Sustainability $22,478.0 $22,127.0 $19,970.0 -$2,157.0
Toxic Research and Prevention $24,795.0 $24,459.0 $26,568.0 $2,109.0
Water: Human Health Protection $3,416.0 $3,375.0 $3,559.0 $184.0
Total, Science & Technology $754,506.0 $760,084.0 $763,527.0 $3,443.0

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program

D-3


Goal 2: Clean and Safe Water

sizes and characteristics could adopt. In FY 2009, there will be increased training and outreach
exercises for Regional Water Emergency Response/Technical Assistance Team members,
consistent with the National Approach to Response. Also, the Agency, in collaboration with our
water sector security stakeholders, will continue efforts to develop, implement and initiate
tracking of national measures related to homeland security critical infrastructure protection
activities.

Research

EPA’s drinking water and water quality research programs conduct leading edge,
problem-driven research to provide a sound scientific foundation for Federal regulatory decision-
making. These efforts will result in strengthened public health and aquatic ecosystem protection
by providing data methods, models, assessments, and technologies for EPA program and
Regional Offices, as well as state and local authorities.

In FY 2009, these research programs will conduct studies and deliver science products
needed by the nation to realize clean and safe water. The drinking water research program will
focus on treatment strategies, exposure and analytical methods, and health effects information
that can be applied to classes of contaminants in the context of the drinking water hydrologic
cycle — source water, treatment, and distribution. The water quality research program will
continue providing approaches and methods the Agency and its partners need to develop and
apply criteria to support designated uses, support implementation of watershed management
approaches, and application of technological options to restore and protect water bodies using
information on effective treatment and management alternatives. These programs also will
conduct research that will yield tools and strategies to manage our nation’s aging water
infrastructure.

Other important areas of research in FY 2009 will include: 1) studies on aquifer storage
and recovery (ASR) on the safety of drinking water and the impacts of subsurface carbon
dioxide (CO) storage on drinking water quality; 2) revising aquatic life guidelines, recreational
water criteria, the effects of emerging contaminants, nutrients, biocriteria and multiple stressor
effects on stream biota; 3) watershed management work that supports diagnoses of impairment,
mitigation and pollutant load reduction from headwater streams and isolated wetlands; and
4) improving the control of microbial releases from publicly owned treatment works (POTWs)
during periods of significant wet weather events.

Recognizing that environmental policy and regulatory decisions will only be as good as
the science upon which they are based, EPA makes every effort to ensure that its science is of
the highest quality and relevance, thereby, providing the basis for sound environmental results.
EPA uses the Research and Development (R&D) Investment Criteria of quality, relevance, and
performance in its decision-making processes through the use of research strategies and plans,
program review and evaluation by the Board of Scientific Counselors (BOSC) and the Science
Advisory Board (SAB), and peer review.


Table of Contents

Introduction and Overview:

Annual Performance Plan and Budget OVerviewW 0.0... cccccccetetneteteneneteneneentes iii
Goals:

Goal 1: Clean Air And Global Climate Change........cccccccccicnetenienetneneeneee 4
Goal 2: Clean and Safe Water .............cccceccccecc ee eeeeceeeseseeeeesesescsenececsestecseseesestieseneeees 7
Goal 3: Land Preservation and Restoration ...........0cccccce cece eeerenteeeesereteee 11
Goal 4: Healthy Communities and Ecosystems ............:cccccccceeceeeeeeeeeeseteeeteeteeeeneeies 17
Goal 5: Compliance and Environmental Stewardship ................0::ceeeeeeeeeeeeeee 27
Appendices:

Categorical Grants Program.............. cece cere eetetee eres ceteeeeeetesetieeeeeteseteteseesesreeed A-1

Infrastructure Financing

Trust Funds..

Budget Tables:
Agency Resources by Appropriations... cccccccccceteteetetenteteteeetetreenenenrents D-1
Agency Resources by Goal ....... cc cccccccccecerenetetetetetenetneneeeneteeneneneees D-2
Program Projects .....0..ccccccccecetneteeneieeneistneneneneeneieneieneneeenees D-3

List Of ACFONYMS.........c ccc eceecceeeeceeceeneeeseeeeeseeesecseeesecseeeeeeseeseesseseeeseseeeseeieeeeeeeenseeseens E-1


Goal 5: Compliance and Environmental Stewardship

and fosters a culture of creative environmental problem-solving. In total, the Agency proposes
$107 million to improve environmental performances through pollution and other stewardship
practices.

- Partnering with Businesses and Consumers: In FY 2009, through the Pollution
Prevention (P2) program, EPA will promote stronger regional partnerships and
geographically tailored approaches to address unique community problems. Also in
FY 2009, EPA will continue to encourage, empower, and assist government and
business to “green” the nation’s supply and demand structures to make them more
environmentally sound. Through the Environmentally Preferable Purchasing Program,
the Agency will provide enhanced guidance to the Federal building community on model
green construction specifications and help Federal agencies identify and procure those
products that generate the least pollution, consume fewest non-renewable natural
resources, and constitute the least threat to human health and to the environment.
EPA’s innovative Green Suppliers Network Program works with large manufacturers to
increase energy efficiency; identify cost-saving opportunities; optimize resources and
technology through the development of sound business approaches incorporating
pollution prevention; and to promote those approaches among their numerous suppliers.
P2 grants to states and tribes enable them to provide technical assistance, education
and outreach to assist businesses and industries in identifying strategies and solutions
to reduce wastes and pollution at the source. The importance of tracking outcomes from
P2 grants has been reinforced by adding key P2 environmental outcome targets to
program guidance reporting measures.

In FY 2009, through the National Partnership for Environmental Priorities
(NPEP), the Agency will continue to reduce priority chemicals in wastes. As of August
2007, the NPEP program has obtained industry commitments for 6.5 million pounds of
priority chemical reductions through 2011. Reductions will be achieved primarily through
source reduction made possible by safer chemical substitutes.

e Promoting Innovation and Stewardship: In FY 2009, EPA will work to bring about a
performance-oriented regulatory system that develops innovative, flexible strategies to
achieve measurable results; promote environmental stewardship in all parts of society;
support sustainable development and pollution prevention; and foster a culture of
creative environmental problem-solving.

The Performance Track (PT) program will improve program reporting, develop and
implement national and regional challenge commitments, and leverage state environmental
leadership programs by aligning PT with 20 state programs. In addition, EPA will sponsor a
formal program evaluation of the program in FY 2009.

Also in FY 2009, EPA will continue to grow its partnerships and track environmental
performance trends with major manufacturing sectors, such as steel, cement, forest products,
and shipbuilding, plus important non-manufacturing sectors like agribusiness, construction, and
ports. The Agency will address barriers to improved performance, provide sector-specific
“drivers” for continuous improvement and stewardship, and use the partnerships to tackle high
priority environmental issues.

30


Goal 4: Healthy Communities and Ecosystems

increased risk from exposure to environmental pollutants. As people age, their bodies are less
able to detoxify and eliminate toxins. Native Americans represent another segment of the
population with a different risk profile. Their traditional sources for food and ways of life may
lead to higher levels of exposure to certain toxics.

Pesticides Programs

A key component of protecting the health of people, communities, and ecosystems is
identifying, assessing, and reducing the risks presented by the thousands of chemicals on which
our society and economy have come to depend. Toward that end, EPA is investing
$133.8 million in Pesticides Licensing programs in FY 2009. Chemical and biological pesticides
help meet national and global demands for food; provide effective pest control for homes,
schools, gardens, highways, utility lines, hospitals, and drinking water treatment facilities; and
control animal vectors of disease.

During FY 2009, EPA will continue to review and register new pesticides, new uses for
existing pesticides, and other registration requests in accordance with Food Quality Protection
Act (FQPA) standards and Pesticide Registration Improvement Renewal Act (PRIA 2)
timeframes. EPA will continue to process these registration requests, with special consideration
given to susceptible populations, especially children. Specifically, EPA will focus special
attention on the foods commonly eaten by children, to reduce pesticide exposure to children
where the science identifies potential concerns.

Reduced concentrations of pesticides in water sources indicate the efficacy of EPA’s risk
assessment, management, mitigation, and communication activities. Using sampling data
collected under the U.S. Geological Survey (USGS) National Water Quality Assessment
Program, EPA will monitor the impact of our regulatory decisions for four pesticides of
concern—diazinon, chlorpyrifos, malathion, and azinphos-methyl—and consider whether any
additional action is necessary.? In FY 2009 the Agency will continue to work with USGS to
develop sampling plans and refine goals, and we will ask USGS to add additional insecticides to
sampling protocols and establish baselines for newer products that are replacing
organophosphates, such as synthetic pyrethroids.

EPA’s statutory and regulatory functions include registration, reregistration,
Reregistration Eligibility Decisions implementation, registration review, risk reduction
implementation, rulemaking and program management. Many of these actions will be for
reduced-risk pesticides for which, once registered and utilized by pesticide users, increased
benefits will accrue to society. Working together with the affected user communities through
programs such as the Pesticide Environmental Stewardship Program and the Strategic
Agricultural Initiative, the Agency will find ways to accelerate the adoption of these lower-risk
products.

° Gilliom, R.J., et al. 2006. The Quality of Our Nation’s Waters: Pesticides in the Nation’s Streams and Ground
Water, 1992-2001. Reston, Virginia: U.S. Geological Survey Circular 1291. 171p. Available on the internet at:
http://pubs.usgs.gov/circ/2005/1291/.

18


United States Environmental Protection Agency
Office of the Chief Financial Officer (2710A)
Publication Number: EPA-205-S-08-001
February 2008
www.epa.gov/ocfo

Recycled/Recycleable Printed on 100% Post-consumer, Process Chlorine Free Recycled Paper


Page Intentionally Blank


Goal 4: Healthy Communities and Ecosystems

26


Appendix A: Categorical Grants

CATEGORICAL GRANTS PROGRAM (STAG)

(Dollars in Millions)

$1,168

$1,200 $1,079 $ $1,113 189
$1,006

$1,065 7

$1,000

883

$800-

$600-

$4004

$2004

$04
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Ena. Ena. Ena. Ena. Ena. Ena. Ena. Ena. Ena Pres.

*Does not account for the 2006 $80.0 million rescission.

Categorical Grants

In FY 2009, EPA requests a total of $1.057 billion for 21 “categorical” program grants for
state, interstate organizations, non-profit organizations, intertribal consortia, and Tribal
governments. EPA will continue to pursue its strategy of building and supporting state, local
and Tribal capacity to implement, operate, and enforce the Nation’s environmental laws. Most
environmental laws envision establishment of a decentralized nationwide structure to protect
public health and the environment. In this way, environmental goals will ultimately be achieved
through the actions, programs, and commitments of state, Tribal and local governments,
organizations and citizens.

In FY 2009, EPA will continue to offer flexibility to state and Tribal governments to
manage their environmental programs as well as provide technical and financial assistance to
achieve mutual environmental goals. First, EPA and its state and Tribal partners will continue
implementing the National Environmental Performance Partnership System (NEPPS). NEPPS
is designed to allow states more flexibility to operate their programs, while increasing emphasis
on measuring and reporting environmental improvements. Second, Performance Partnership
Grants (PPGs) will continue to allow states and tribes funding flexibility to combine categorical
program grants to address environmental priorities.

Also, to help improve EPA's grants management, the Agency is working with the states
to establish a standardized template for states to use in developing and submitting their
workplans for continuing environmental program grants. Based on experience with initial


Goal 4: Healthy Communities and Ecosystems

The FY 2009 budget request also will enable the Chesapeake Bay Program to continue
work with program partners to accelerate implementation of pollution reduction and aquatic
habitat restoration efforts and ensure that water quality objectives are achieved as soon as
possible. EPA is committed to its ambitious long-term goals of 100 percent attainment of
dissolved oxygen standards in waters of the Chesapeake Bay and 185,000 acres of submerged
aquatic vegetation (SAV). The FY 2009 request will bring the Agency closer to addressing key
priority coastal and ocean issues in the Gulf of Mexico, such as coastal restoration, water quality
for healthy beaches and shellfish beds through improved detection and forecasting of harmful
algal blooms and microbial source tracking methodologies, and reduction of nutrient inputs to
coastal ecosystems.

In conducting special initiatives and planning activities, in FY 2009 EPA is investing
$2.1 million in the South Florida Program to assist with coordinating and facilitating the ongoing
implementation of the Water Quality Protection Program for the Florida Keys National Marine
Sanctuary (FKNMS), conduct studies to determine cause and effect relationships among
pollutants and biological resources, implement wastewater and storm water master plans, and
provide public education and outreach activities.

New strategic targets are proposed for the South Florida Program in the 2006-2011
Strategic Plan. The new strategic targets address important environmental markers such as
stony coral cover, health and functionality of seagrass beds, water quality in the FKNMS, and
phosphorus levels throughout the Everglades Protection Area and effluent limits for all
discharges, including storm water treatment areas.

Community Action for a Renewed Environment (CARE)

CARE is a competitive grant program that offers an innovative way for communities to
take action to reduce toxic pollution. Through CARE, communities create local collaborative
partnerships that implement local solutions to minimize exposure to toxic pollutants and reduce
their release. In FY 2009 the Agency is investing $2.4 million in the program to award
approximately 12 new grants, provide technical resources and training to approximately
50 communities, and work with other federal agencies to coordinate support for communities.

Brownfields

Improving a community’s ability to make decisions that affect its environment is at the
heart of EPA’s community-centered work. EPA shares information and builds community
capacity to consider the many aspects of planned development or redevelopment. EPA
encourages community development by providing funds to assist communities with inventory,
assessment, and clean up of the contaminated properties (“Brownfields”) that lie abandoned or
unused. In addition, the Smart Growth Program works with stakeholders to create an improved
economic and institutional climate for Brownfields redevelopment. Addressing these challenges
requires combining innovative and community-based approaches with national guidelines and
interagency coordination to achieve results.

21


Goal 1: Clean Air and Global Climate Change

The Agency also will fund research grants to universities and nonprofits to study topics such as
the relationship between long-term exposure to fine particles in the atmosphere and the
frequency and progression of pulmonary and cardiovascular diseases.


Appendix D; Budget Tables

Resources by Program / Project

(Dollars in Thousands)

2008 2008 2009 Change
President's Enacted President's FY08 Enacted
Budget Budget Budget to FY 09PresBud
(Children and Other Sensitive Populations:
Agency Coordination) ($6,203.0) ($6, 144.0) ($6,309.0) ($165.0)
(Environmental Education) ($0.0) ($8,860.0) ($0.0) (-$8,860.0)
International Programs $17,755.0 $18,357.0 $18,624.0 $267.0
(US Mexico Border) ($4,646.0) (5,439.0) ($4,902.0) (-$537.0)
IT/ Data Management / Security $96,602.0 $96,257.0 $100,150.0 $3,893.0
Legal / Science / Regulatory / Economic Review $123,361.0 $116,953.0 $125,071.0 $8,118.0
Operations and Administration $472,294.0 $462,769.0 $492,509.0 $29,740.0
(Rent) ($165,817.0) ($161,261.0) ($164,866.0) ($3,605.0)
(Utilities) ($8,210.0) ($8,082.0) —($11,333.0) ($3,251.0)
(Security) ($25,344.0) ($24, 949.0) ($25,676.0) ($727.0)
Pesticides Licensing $118,158.0 $116,744.0 $116,366.0 -$378.0
Resource Conservation and Recovery Act
(RCRA) $122,397.0 $118,868.0 $120,526.0 $1,658.0
(eManifest) ($4,000.0) ($0.0) ($2,000.0) ($2,000.0)
Toxics Risk Review and Prevention $90,071.0 $89,617.0 $90,401.0 $784.0
(Endocrine Disruptors) ($5,890.0) ($8,663,0) ($5,847.0) (-$2,876.0)
(HPVIVCCEP) ($11,015.0) ($12,049.90) _~—($11,381.0) (-$668.0)
Underground Storage Tanks (LUST / UST) $11,719.0 $11,572.0 $12,256.0 $684.0
Water: Ecosystems $73,721.0 $82,481.0 $74,462.0 -$8,019.0
Great Lakes Legacy Act $35,000.0 $34,454.0 $35,000.0 $546.0
National Estuary Program / Coastal Waterways $17,203.0 $26,779.0 $17,239.0 -$9,540.0
Wetlands $21,518.0 $21,248.0 $22,223.0 $975.0
Water: Human Health Protection $99,797.0 $99,511.0 $102,271.0 $2,760.0
Water Quality Protection $208,943.0 $206,220.0 $211,891.0 $5,671.0
Total, Environmental Program & Management $2,298,188.0  $2,327,962.0 — $2,338,353.0 $10,391.0
Inspector General
Audits, Evaluations, and Investigations $38,008.0 $41,099.0 $39,483.0 -$1,616.0
Total, Inspector General $38,008.0 $41,099.0 $39,483.0 -$1,616.0

NOTE: Items in parentheses are a subset of the program and will not add up to totals shown for the program
D-5


Appendix B: Infrastructure Finance

Infrastructure / STAG Project Financing
(Dollars in Millions)

FY 2008 FY 2008 FY 2009 Change
President's Enacted President's FY 08EN

Type / Grant Budget Budget Budget to FY09PB
Clean Water State Revolving Fund $687,554 $689,080 $555,000 -$134,080
Drinking Water State Revolving Fund $842,167 _ $829,029 _ $842,167 $13,138

State Revolving Funds $1,529,721 $1,518,109 $1,397,167 $120,942
Mexico Border $10,000 $19,688 $10,000 -$9,688
Alaska Native Villages $15,500 $24,610 $15,500 -$9,110
Diesel Emissions Reduction Grant Program* $35,000 $59,064 $49,220 -$9,844
Brownfields Projects $89,258 $93,518 $93,558 $40

Special Needs Projects $149,758 $196,880 $168,278 -$28,602

Infrastructure Assistance Total $1,679,479 $1,714,989 $1,565,445  -$149,544

“Formerly the Clean School Bus Program.

Infrastructure and Special Projects Funds

The 2009 President’s Budget includes a total of $1.565 billion for EPA’s Infrastructure
programs in the State and Tribal Assistance Grant (STAG) account. Approximately
$1.413 billion will support EPA’s Goal 2: Clean and Safe Water; $103.6 million will support
EPA’s Goal 4: Healthy Communities and Ecosystems; and $49.2 million will support Goal 1:
Clean Air and Global Climate Change.

Infrastructure and targeted projects funding under the STAG appropriation provides
financial assistance to states, municipalities, interstates, and Tribal governments to fund a
variety of drinking water, wastewater, air and Brownfields environmental projects. These funds
are essential to fulfill the Federal government's commitment to help our state, Tribal and local
partners obtain adequate funding to construct the facilities required to comply with Federal
environmental requirements and ensure public health and revitalize contaminated properties.

Providing STAG funds to capitalize State Revolving Fund (SRF) programs, EPA works in
partnership with the states to provide low-cost loans to municipalities for infrastructure
construction. As set-asides of the SRF programs, grants are available to Indian tribes and
Alaska Native Villages for drinking water and wastewater infrastructure needs based on national
priority lists. The Brownfields Environmental Program provides states, tribes, and political
subdivisions (including cities, towns, and counties) the necessary tools, information, and
strategies for promoting a unified approach to environmental assessment, cleanup,
characterization, and redevelopment at sites contaminated with hazardous wastes and
petroleum contaminants.

B-1


Appendix B: Infrastructure Finance

Goal 2: Clean and Safe Water
Capitalizing Clean Water and Drinking Water State Revolving Funds

The Clean Water and Drinking Water State Revolving Fund programs demonstrate a
true partnership between states, localities and the Federal government. These programs
provide Federal financial assistance to states, localities, and Tribal governments to protect the
nation’s water resources by providing funds for the construction of drinking water and
wastewater treatment facilities. The state revolving funds are two important elements of the
nation’s substantial investment in sewage treatment and drinking water systems, which provides
Americans with significant benefits in the form of reduced water pollution and safe drinking
water.

EPA will continue to provide financial assistance for wastewater and other water projects
through the Clean Water State Revolving Fund (CWSRF). CWSRF projects include nonpoint
source, estuary, storm water, and sewer overflow projects. The dramatic progress made in
improving the quality of wastewater treatment since the 1970s is a national success. In 1972,
only 84 million people were served by secondary or advanced wastewater treatment facilities.
Today, 99 percent of community wastewater treatment plants, serving 181 million people, use
secondary treatment or better. Water infrastructure projects supported by the program
contribute to direct ecosystem improvements by lowering the amount of nutrients and toxic
pollutants in all types of surface waters. While great progress has been made, many rivers,
lakes and ocean/coastal areas still suffer an enormous influx of pollutants after heavy rains.
The contaminants result in beach closures, infect fish and degrade the ability of the watersheds
to sustain a healthy ecosystem.

The FY 2009 request includes $555.0 million in funding for the CWSRF. Approximately
$26 billion has been provided to capitalize the CWSRF, more than three times the original Clean
Water Act authorized level of $8.4 billion. Total CWSRF funding available for loans since 1988
through June 2007, reflecting loan repayments, state match dollars, and other funding sources,
exceeds $65 billion, of which $63 billion has been provided to communities as financial
assistance. The following table illustrates the long-term financial picture for the CWSRF:

Annual Federal Capitalization Revolving Level Time Span
$555 million through 2011 $3.4 billion (in 2001 $) 2015 through 2040
($6.8 billion total, 2004-2011)

The DWSRF is designed to be self-sustaining over time and will help offset the costs of
ensuring safe drinking water supplies and assisting small communities in meeting their
responsibilities. Since its inception in 1997, the Drinking Water State Revolving Fund (DWSRF)
program has made available $12.8 billion to finance 4,985 infrastructure improvement projects
nationwide, with a return of $1.73 for every $1 of Federal funds invested. As of June 30, 2007,
$8.1 billion in capitalization grants have been awarded, amounting to loans/assistance of
$12.6 billion. The following table illustrates the long-term financial picture for the DWSRF:

Annual Federal Capitalization Revolving Level Time Span
$842 million through 2018 $1.2 billion (in 2001 $) 2019 through 2039



Goal 2: Clean and Safe Water

Drinking Water

During FY 2009, EPA, the states and community water systems will build on past
successes while working toward the FY 2009 goal of assuring that 90 percent of the population
served by community water systems receives drinking water that meets all applicable health-
based standards. To promote compliance with drinking water standards, states carry out a
variety of activities, such as conducting onsite sanitary surveys of water systems and working
with small systems to improve their capabilities. EPA will work to improve compliance rates by
providing guidance, training, and technical assistance; ensuring proper certification of water
system operators; promoting consumer awareness of drinking water safety; maintaining the rate
of system sanitary surveys and onsite reviews; and taking appropriate action for noncompliance.
In FY 2009, states and EPA will process Underground Injection Control permit applications for
experimental carbon sequestration and gather information from these pilots to facilitate the
permitting of large-scale commercial carbon sequestration in the future. To help ensure that
water is safe to drink, EPA provides $842.2 million for the Drinking Water State Revolving Fund.

Clean Water

In FY 2009, EPA will work with states to continue progress toward the clean water goals
to implement core clean water programs, including innovations that apply programs on a
watershed basis, and to accelerate efforts to improve water quality on a watershed basis.
Building on the progress toward clean water achieved over the past 30 years, EPA is working
with states and tribes to implement the Clean Water Act by focusing on: scientifically sound
water quality standards, effective water monitoring, strong programs for controlling nonpoint
sources of pollution, and strong discharge permit programs. To keep pace with the nation’s
burgeoning energy exploration and development, EPA will place an increased focus on energy
related permitting in FY 2009. The work involves NPDES permit actions related to conventional
oil and gas, coalbed methane, coal mining, ethanol, power plants, refineries, uranium, natural
gas liquids, liquefied natural gas terminals, pipelines, and oil shale/tar sands.

The Agency’s request continues the monitoring initiative begun in 2005 to strengthen the
nationwide monitoring network and complete the baseline water quality assessment of the
nation’s waters. These efforts are resulting in scientifically defensible water quality data and
information essential for cleaning up and protecting the nation’s waters. Progress in improving
coastal and ocean waters documented in the National Coastal Condition Report will be
maintained by focusing on: assessing coastal conditions, reducing vessel discharges,
implementing coastal nonpoint source pollution programs, managing dredged material, and
supporting international marine pollution control. EPA will continue to provide annual
capitalization to the Clean Water State Revolving Fund (CWSRF). In FY 2009 EPA will provide
$555.0 million and will allow EPA to meet the Administration’s capitalization target of $6.8 billion
total for 2004-2011 and enable the program to meet its long-term revolving target of $3.4 billion.

Homeland Security

EPA has a major role in supporting the protection of the nation’s critical water
infrastructure from terrorist threats. In FY 2009, EPA will continue to support the Water Security
Initiative (WSI) pilot program and water sector-specific agency responsibilities, including the
Water Alliance for Threat Reduction (WATR), to protect the nation’s critical water infrastructure.
The FY 2009 budget provides $35.2 million for water security efforts. This includes
$22.6 million for WSI and WATR which will continue efforts to demonstrate the concept of an
effective contamination warning system that drinking water utilities in high threat cities of all

8